He gave an honest answer. During a visit to Southport, England, on August 20, someone asked about King Charles’ health. “I’m not too bad,” the monarch shared, letting his subjects know he’s holding up after revealing earlier this year that he has cancer. But Charles also admitted he’s not at 100 percent.

That much was made clear when the palace recently revealed Charles and Camilla’s plans to travel to Australia and Samoa in October for their first overseas tour since the diagnosis — acknowledging they won’t make it to New Zealand as originally hoped.

“Because of his treatment schedule, doctors wouldn’t let him extend the trip,” says a royal source. “Charles is coming to terms with the fact that he can’t fulfill his duties as well as before, and he’s adjusted his diary accordingly.”

There are even bigger changes ahead. “No one expects his reign to last much longer, especially because his health could take a dramatic turn for the worse at any time,” the source says of Charles, who inherited his pragmatic approach to the job from his steadfast mother, Queen Elizabeth II. “Stepping down now would be the best decision for the monarchy.”

Which means that Prince William and Kate Middleton are preparing to take over much earlier than anticipated. “Kate, in particular, has given a lot of thought to her new position and has consulted with her husband and multiple advisers about implementing her ideas,” adds the source of the first “commoner” to take the throne in nearly 1,000 years. “These discussions, along with years of experience as a royal, have been instrumental in the making of a modern queen.”

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After more than a decade of toeing the party line, Kate is going to call the shots. “This has been the toughest year of her life,” the source says of the resilient princess, who announced in March she is battling cancer. Kate, 42, “used to be willing to do whatever was best for the institution, but now she’s learned to set boundaries.”

Kate Middleton’s New Way of Doing Things

In other words, her family — not the Firm — will come first. “If this health scare has taught Kate anything, it’s that she doesn’t want to waste time away from her kids,” the source says of Prince George, 11, Princess Charlotte, 9, and Prince Louis, 6. “For centuries, the crown came with a certain set of responsibilities, but Kate and William have always vowed that they’re going to do things differently.”

That means the princess will likely set her own schedule, which the source suggests could even be on a “parttime” basis at first. “She’s been slammed in the past for not working enough, but she’s not going to let anyone pressure her into doing more,” the source adds. “The idea is to make more of an impact with meaningful charity work, like her commitment to early childhood development.”

As a result, she isn’t expected to attend as many ribbon- cuttings or factory tours, which older royals, like William’s workhorse aunt, Princess Anne, 74, have always claimed are the family’s bread-and- butter. That’s the old way of doing things, the source points out, “and Kate understands that they will all have to adapt and evolve to keep the monarchy relevant.”

Kate Middleton’s Lifetime of Training

There’s no doubt Kate understands how to do her job best — she’s long been the family’s crown jewel. The institution would “collapse” without Kate, Princess Diana’s former butler Paul Burrell has said of the princess, who has topped the list of the most popular royals since the queen’s death.

It’s not hard to see why: Taking her cues — and, occasionally, formal lessons — from Elizabeth II, as well as a long line of helpful courtiers, “Kate does her homework before engagements so she can be fully present, and she’s mastered the art of making strangers feel special and seen,” says the source. “She’s also famously stylish and beautiful, but somehow manages to be approachable as well. Her illness has only humanized her more.”

And from the years she was taunted with the nickname “Waity Katie” — while William, 42, dragged his feet over their engagement — to the endless speculation about her disappearance during her cancer treatment this year, says the source, “Kate has shown immense poise under the pressure of the spotlight.”

Even after being publicly slammed by her brother-in-law Prince Harry and his wife, Meghan Markle, “Kate came out unscathed. It may seem effortless, but it takes an enormous amount of finesse to navigate the Firm and maintain a flawless image.”

And amid the jostling for power behind palace walls, she’s managed to carve out a place for herself. According to royal author Robert Jobson’s new book, Catherine, the Princess of Wales, Kate sent a humorous email to friends two years before William even popped the question to ask them to start calling her the more formal Catherine, setting the stage for her eventual position. And in his memoir, Spare, Harry wrote that Kate later resisted Camilla and Charles’ entreaties to change her name to a K spelling so it wouldn’t conflict with theirs.

“That’s just one of many of Camilla’s behind-the-scenes schemes and slights over the years,” says the source, adding that the current queen may have some trouble relinquishing the crown. “Camilla was villainized for years because of Princess Diana, and just when she’s finally winning over the public’s affection, she’s being usurped by Kate.”

But even Camilla can’t deny that Kate is going to rule. “This is her crowning moment,” saysthe source. “And Kate is beyond ready to get started.”