Real-Life Princess Diaries: Prince Albert's Second Love Child

June 1, 2006 — -- It is the stuff fairy tales and Hollywood movies are made of.One day you're a typical California girl, and the next the world treats you like a princess.

Her name and face have been hidden from the public because she's a minor. But according to the French daily Le Figaro, she is the 14-year-old daughter of Prince Albert II of Monaco.

Albert's own lawyer told the newspaper that paternity was legally recognized a few weeks ago. Her mother, a former waitress, reportedly had a two-week affair with Albert during a trip to the French Riviera in 1991.

Real-Life Princess

Word has spread fast in the young girl's Palm Desert neighborhood and school. Her identity was supposed to be kept secret until she turned 18, but because of her instant celebrity, gawkers have flooded in.

"This morning there appeared to be a problem with media and paparazzi," said Sgt. Rick Kamstra of the Riverside County Sheriff's Department.

Her middle name is Grace ... a nod perhaps to her late grandmother, the legendary American actress Grace Kelly. Kelly left the Hollywood hills for sun-kissed Monaco after meeting the dashing Prince Rainier. The two married on April 19, 1956, and lived a fairy tale life until the princess died in a car accident in 1982. Rainier brought up their three children, grooming their only son, Albert, to take over the principality.

Rainier beseeched his son to get married to ensure the future of the monarchy, but the playboy bachelor never walked down the aisle. It was only after his father's death that Albert, 48, became the reigning prince on April 6, 2005.

Coming Clean

Since taking over, Albert has tried to rule his Mediterranean resort with honesty and transparency. French authorities accused the principality of tolerating money laundering in the late '90s. Monaco, a major banking and gambling center, denied any such claims.

Regardless, Prince Albert's truth-telling kick has extended to his personal life.

In July 2005, he admitted he was the father of a 3-year-old boy named Alexandre. Bombshell Nicole Coste, a former flight attendant, fell in love with Monaco's heir in 1997, after meeting him on a flight. Photos of Prince Albert holding the tot during visits to Coste's Paris apartment graced the magazine Paris Match, inciting the prince to come clean.

One year later, Prince Albert's first love child learns he's got an American half sister.

Le Figaro, quoting one of the prince's confidants, proclaims, "There are no other hidden children."

Because both children were born out of wedlock, they will never get to take over the throne. That said, they will get a generous allowance from their cash-rich daddy.

Forbes magazine has estimated Prince Albert's worth at $1 billion.

Monaco's royal palace has refused to comment, despite Le Figaro's claims that the mother and daughter were sighted in Paris mid April. The newly found princess will continue her studies in the United States, according to Prince Albert's lawyer, Thierry Lacoste.

And it doesn't look as if she'll be bogged down by a summer job or dreaded camp.

Lacoste told the Figaro, "She's welcome to spend time in Monaco either to visit for a few days or even live there."

ABC News' Taina Hernandez contributed to this report.