On December 3, King Charles III and his wife, Queen Camilla, hosted a lavish state banquet for Germany’s president at Buckingham Palace, but it was Prince William and Princess Kate who commanded the most attention. Kate, dazzling in the Strathmore Rose Tiara, the largest and most dramatic headpiece she’s ever worn, sat on one side of President Frank-Walter Steinmeier, marking the third time she’s been seated next to a visiting Head of State at a banquet since July. William was across from them beside the president’s wife, signaling the couple’s elevated status within The Firm.

Their prominence at the glittering affair — and the palace’s careful staging of it — was intentional. With Charles still receiving treatment for an undisclosed type of cancer, “The message they are sending out is that the monarchy is healthy,” says a source, “regardless of what happens with [the king].”

Just weeks earlier, the couple signaled their long-term strategy in another way: by shining a brighter spotlight on the next generation. With William returning from the Earthshot Prize in Brazil, 12-year-old Prince George accompanied Kate to the Festival of Remembrance. Dressed in a black suit adorned with a poppy pin, the young heir sat between his mother and grandfather at Royal Albert Hall, taking in the ceremony with poise and maturity. “Kate and William are allowing George to take on more responsibilities,” says the source, adding that they are making it clear “the next generation is already in view.”

As William and Kate’s profile rises, so too does scrutiny of the decisions unfolding behind palace walls — and insiders say their influence is already being felt. It’s been speculated that William and Kate, both 43, were heavily involved in the decision to strip Andrew Mountbatten-Windsor (formerly Prince Andrew) of his titles and have him and ex-wife Sarah “Fergie” Ferguson kicked out of their home at Royal Lodge. (Andrew, 65, was accused of sexual assault by Jeffrey Epstein victim Virginia Giuffre, who died by suicide in April; he and Ferguson, 66, have also been under fire over their friendship with the late sex offender. Andrew has always denied any wrongdoing.)

“William was very decisive about how matters should be handled and resolved swiftly,” says the source, noting that the prince and Charles, 77, held their annual meeting at Balmoral this summer, where William “pressed the issue.” A second source says it was Camilla, 78, who pushed her husband to have Andrew ousted, adding, “Charles obviously briefed William and Kate, but it was fully his decision. They were fine with it; they weren’t planning on working with Andrew anyway. Kate and William have a lot of influence and a voice at the table, but the decision-making is the king.”

According to the first source, Charles is “not thrilled” about the narrative that William is secretly pulling strings. “He doesn’t feel great about it, as he has finally attained the position he has waited for his whole life. Now that he’s king, everyone is focused on who will come next.”

Despite some reports, Charles and William appear to have a peaceful working relationship — for now, at least. (In late August, The Daily Beast reported that there’s significant tension between the father and son over who’s in charge.) “Charles wants William to succeed, but William can be strong-minded and stubborn,” shares the first source, adding that the future king has also apparently become more assertive with his father.

The second insists Charles is still in control. “No power has been relinquished to William,” says the second source, noting that the passing of the baton is a collaborative effort. “William has his own office and staff separate from the king, and he and Charles work closely together. Charles believes William will do an incredible job as king, and he’s very supportive. [When] they don’t agree, [William] respects his father’s decisions.”

Adds royal expert Kristen Meinzer: “Some outlets say William is running things from the shadows, others say the king is still very much in charge. I suspect the latter is closer to the truth — after all, Charles waited a very long time to be the king.”

Still, the second source notes that William has also been looking the part more lately, while on the job and on the social media account he shares with Kate. He appeared “very presidential” in an image of him hard at work on a plane en route to Brazil. “William is becoming more serious, and we’re all starting to see what kind of monarch he will be,” adds the source. “The palace is consciously elevating and presenting him in an authoritative manner, anticipating what’s to come.”

There’s no doubt William and Kate (also parents to Princess Charlotte, 10, and Prince Louis, 7) are looking ahead and thinking about their plans for the monarchy. “They are basically creating their version of what a new monarchy will look like,” says the second source, adding, “they are completely modernizing it. There will be changes in terms of how The Firm is run, and antiquated rules will change. There will be more freedom.”

Unlike previous generations, William and Kate prefer to take on fewer causes, hoping to make a bigger impact on the issues they really care about. (William’s focus is mainly mental health, homelessness and the environment; Kate is dedicated to early childhood education.) Explains the first source, “Rather than spreading themselves too thin, they have distilled their efforts down to a concise list.”

They will continue to downsize. “The idea is: less people, less drama,” says the second source. Adds royal expert Richard Fitzwilliams: “William’s style is totally different from Charles’. He will undoubtedly reassess the use of palaces and the monarchy’s property portfolio. Cost is always an issue.”

William hinted at shake-ups to come during his appearance on Eugene Levy’s Apple TV series, The Reluctant Traveler, on October 3. “I think it’s safe to say change is on my agenda,” he told Levy. (The second source notes that William’s involvement with the actor’s series illustrates “their plans to modernize and be more accessible.”) As for welcoming his younger brother, Prince Harry, and Meghan Markle back into the mix when he takes the throne, Meinzer says “a lot of relationship mending would need to take place first,” adding, “I’m not sure how likely that is.”

There may be a transition of power sooner rather than later. “They don’t know how much time Charles has left,” says the second source, “and his [cancer] doesn’t look curable.” On December 12, the king appeared in Channel 4’s Stand Up to Cancer broadcast in a prerecorded message to emphasize the importance of early detection and share that his own schedule of treatment “can be reduced in the New Year.” Buckingham Palace did not say the king is in remission, but that his treatment is moving to a “precautionary phase” and his condition will be monitored to ensure his continued recovery. Charles will not reveal what type of cancer he has, but the palace has confirmed he does not have prostate cancer.

While he doesn’t want to step down — “Charles is committed to working tirelessly; duty comes first,” says the first source — a contingency plan is in place. “They have been preparing for a while,” says the second source. Adds Fitzwilliams: “There is an awareness that not only are the Waleses and their family the obvious future of the monarchy, but that William’s time may come sooner than originally expected.”

William and Kate are ready to step in. “Kate is doing much better, fortunately,” says Meinzer. (Kate announced she’s in remission from cancer in January.) “We’ve seen her out and about a bit more than we did last year. Once she reaches her one-year anniversary of being in remission, perhaps we’ll see her working more.” Adds the second source: “Kate’s still cautious about pacing herself with her schedule and the kids’ schedule. She knows she will have to take on more when she’s queen.”

They are savoring normalcy while they still can. During an interview with Brazilian TV host Luciano Huck, William opened up about his surprisingly relatable life at home with their three kids and how he spends his downtime. “Playdates, taxi driver, sports days, matches, playing in the garden when I can. School run most days,” he said. “William and Kate have created their own bubble for themselves,” says the second source. “They are a young family trying to live as normal a life as possible. They are trying to enjoy the moments before they become king and queen and their lives change forever.”

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