In 1910 London, Kate Croy lives under the careful watch of her domineering Aunt Maud, who has taken the penniless Kate in as her ward and intends to marry her off to a rich man. Kate is secretly in love with a young journalist named Merton Densher, whom her aunt forbids her from pursuing due to his humble circumstances. Meanwhile, Kate meets a beautiful and vivacious American heiress named Milly Theale, who is terminally ill and on an extended trip through Europe, and Kate concocts a plan to have both love and wealth.
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