While Meghan Markle is busy deciding where she wants to give birth, experts in the US have claimed the new royal could be liable for taxes on the other side of the Atlantic.
According to the claims, the Duke and Duchess of Sussex's first child will automatically become a dual-US citizen because of their mum's American birth.
This status means that the boy or girl will be automatically liable for federal income tax, which one expert claims could mean the child has to list all foreign and financial accounts in which it has an interest.
Kensington Palace has not commented on the story so it remains to be seen to see precisely how it will impact on the new royal arrival.
But while mum Meghan can choose to renounce her American citizenship, her new child will have to wait until they are 18 to do the same.
The same applies to all American citizens born anywhere in the world, CBS News reports.
International tax lawyer Stuart E. Horwich told CBS MoneyWatch: "When a child is born a U.S. citizen, they are a U.S. taxpayer irrespective of residency,"
"The kid will have to list all foreign bank and financial accounts in which he or she has an interest."
Despite the lack of historical precedent, experts said they expect the royal household to be prepared for dealing with US tax authorities.
California attorney Robert Wood said: "They are certainly going to be getting top-quality tax advice, and I would hope and am sure they are doing it all right, even though it's an unusual event for the British Royal family to be filing things with the IRS."
But one tax expert said the predicament could cause the royals to think more into how they manage gifting.
David Treitel, the founder of American Tax Returns Ltd, told CNN : The Queen has got to sit there and her advisers have to sit there thinking: well if I lend Meghan a tiara, if I have the baby use a beautiful silver rattle that was used by Queen Victoria, how much is that worth?
"What's the value of it? How much is to be reported to the States? It's a tough question, it's not easy."
Top news stories from Mirror Online
Source: Read Full Article