Franz Joseph I of Austria the Empire on 6 October 1908. However a diplomatic crisis erupted, as both the Serbs and the Italians demanded compensation for the annexation, which the Austro-Hungarian government refused to entertain. The incident was not resolved until the revision of the Treaty of Berlin in April 1909, exacerbating tensions between Austria-Hungary and the Serbs. On 28 June 1914 Franz Joseph's nephew and heir Archduke Franz Ferdinand, and his morganatic wife Sophie, Duchess of Hohenberg, were assassinated by Gavrilo Princip, a Yugoslav nationalist of Serbian ethnicity, during a visit to Sarajevo. When he heard the news of the assassination, Franz Joseph said
Austria-Este and the present heir is Franz, Duke of Bavaria. However, Francis V had decided to retain the Este name in the Habsburg family, and left most of his huge estate to his young cousin Archduke Franz Ferdinand of Austria, with certain conditions, one of which is that the heir and future heirs use the name of Este. The non-territorial property of the Este family thus fell to the line of Archduke Charles Louis, younger brother to then Emperor Francis Joseph, Austria-Este then becoming a sort of "secundogeniture" title within the Austrian imperial family. Although the first heir, Archduke Franz Ferdinand