Princess Paley was born Olga Valerianovna Karnovich in 1866. She married Grand Duke Paul in 1902. In 1904, the Prince Regent of Bavaria created her Countess von Hohenfelson and in 1915 Nicholas II created her Princess Paley.
Her parents were Valerian Valerianovich Karnovich and Olga Meszaros.
Her children:
Prince Vladimir (1897-1918), executed with his Aunt Ella in 1918 and thrown down a mine shaft. He was a talented poet.
Princess Irina (1903-1990), married Prince Feodor Alexandrovich of Russia (nephew of Nicholas II) and had a son, Michael. Irina divorced him and married Count Hubert de Monbrison and had a daughter, Irina.
Princess Natalia (1905-1981), married Lucien Lelong and divorced and then married John Wilson and lived and died in New York City.
Princess Paley had an unfortunate life, her husband and son both being murdered by the Soviets.
I'm not sure about her palace, but I remember reading that at one point she tried to sue the government to get her belongings back. I don't remember if the suit was successful or not.
Hope this helps!!