And we’re very jealous
From the editors of InStyle US
Words by Alexandra Whittaker
Becoming a royal seems to have its perks: You travel often, you wear stylish outfits, and you might even get an allowance — even if you weren’t born into the family, like Meghan Markle.
According to Business Insider, Markle could get a monetary allowance, but there’s a downside to accepting it. Because Markle would remain a U.S. citizen for at least five years, if she accepts any money, she’ll have to pay U.S. taxes on it if it exceeds $104,100 (which, let’s be honest, it probably would).
Once she marries Prince Harry, Markle will begin benefiting financially just like he does. Prince William and Prince Harry have received $450,000 a year in investment profit from Diana’s estate since they each turned 21. Both brothers and Kate Middleton also receive annual seven-figure allowances from Prince Charles, which is how they pay for things like travel and clothing. Still, it remains unclear exactly how much Markle would pocket.
‘The key for Meghan and her advisors would be to figure out what type of income she will be getting,’ said Avani Ramnani, director of financial planning and wealth management at Francis Financial, to BI. ‘Will this income be from the investments of a trust, or ‘wages’ for any work that she does, or any other type of income? Sometimes, getting one form of income is more advantageous than another.’
The Washington Post has reported that Markle’s unique citizenship situation could ‘cause tax headaches’ for the royal family, but until she officially ties the knot with Prince Harry, that remains to be seen.