For six years, Suri Cruise has redefined what it means for a child to be spoilt. With a wardrobe reportedly worth $3 million, private jets and helicopters to ferry her between mansions, and round-the-clock staff to indulge her every whim, it’s no wonder her father Tom Cruise fondly referred to her as “the Princess of Beverly Hills”.

But as the dust settles from her parents’ divorce earlier this year, it’s clear mum Katie Holmes is preparing the youngster for a brand new – and far less privileged – life in New York. And the first step in her grand plan to reinvent Suri is as drastic as it is genius – re-naming her daughter Sara.

Following an initial report in US magazine In Touch, a close girlfriend, who has known the Dawson’s Creek star for more than a decade, has confirmed the name change to Woman’s Day. “Katie has chosen a normal name like Sara to help her understand that her old life as ‘Princess Suri’ is over now,” says our source. “Katie thinks renaming her Sara will help her understand that wasn’t real – that was just a fairy story for a little girl. And because Suri is a common nickname for Jewish girls whose real name is Sara, she thought it was the natural choice.”

The friend admits there’s no doubt Katie’s bold plan will infuriate Tom, who was planning to reunite with Suri for Thanksgiving. “The cracks in Tom and Katie’s marriage began to appear when they disagreed over how to raise Suri. Katie wants her to grow up as grounded as possible,” explains our insider. “Once she had established custody, the first thing she did was sign Suri up for a normal school, whereas Tom had always insisted she would be home schooled by Scientology tutors.”

Read more about Suri's new life in this week's Woman’s Day on sale Monday November 26, 2012.