Magic is real! Over 99% of humans have some sort of magical ability though they can differ at their levels of control.
All magic users, or Magi as they are known, have a power that falls into one of the four ancient elemental groups. Earth, Air, Fire and Water. Most Magi, over 80%, have only low levels of power that are of little use in day-to-day life. They will, for example, be able to dig a small hole, cause a light breeze over a small area, control but not start a small fire and cause waves on a small pond. They will as well be more attuned to their element, be able to tell when others of their element are around and bond more easily with others of their same element. Magical abilities are not inherited and the types of powers of the parents have no bearing on the types of powers of their children.
Of the remaining 20% of Magi, over 60% are moderately powerful and have far more control over their elements though they still cannot start fires or otherwise bring their elements into existence. The authorities always try to identify these more powerful Magi as early as possible so they can be taught to control their abilities.
Of the remaining Magi, over 99% are far more skilled than the others and for their own safety, as well as for others, need to be taught how to handle their powers as they have almost total control over their elements. Although they still cannot create their elements, there is almost nothing they can't do within their elements over a small area. Since this level of power tends to run in families, the Council of Magi can easily keep a close eye on them.
The remaining Magi are true masters of their elements and there is literally nothing they cannot do. They can even make their elements appear, as if from nowhere. These individuals are very rare and it is imperative that they are identified early as the only way for their powers to be successfully controlled is for them to be bonded to another Magi of similar age and same power level. For those who are, for some reason, unable to be bonded, they face a life of isolation with no direct human contact as their power could literally kill anyone who tries.
On top of their primary magical abilities, about 1/3 of all Magi have a secondary ability that is always of the same skill level as their primary ability. Some have a secondary power that is another primary element. So you can get a Water Magi who is also a Fire or Earth Magi. This can cause confliction, but since the level of power is usually low, there are mostly no problems. Though if the Magi is more powerful, the Magi is instructed with along with others of their peers. Some of these Magi have a secondary ability that is of a diverse skill, though these are much rarer and are always looked after by the Council of Magi.
In addition to their magical abilities, about 10% of Magi have an innate Talent that is far more useful in their daily lives. Talents are as diverse as those who have them, though they do fall into a number of discrete groups. When a Magi child develops their Talent, they are mentored by another from their group to enable them to harness their Talent to its full effect. There are the Makers, those who Talents centre on building things, from houses and other buildings, all the way to jewellery and ornaments. Watchmakers and Jewellers may have this Talent. Then there are the Seekers, those whose Talents centre on searching for things, from people to lost items. Many members of the police and other law enforcement have this Talent. Then come the Healers, those whose Talents centre around the control of pain and the treatment of injuries in both man and animal. Most are found in the medical profession. Another group are the companions. These are those whose Talent enables them to bond with either individuals or groups of humans, or in rare cases, animals. Many with these Talents tend work in therapy or social work. The final group are the Unaligned. These rare individuals have a Talent that does not fit into one of the other groups. These Magi are usually mentored by either a family member or by someone who is trained to assist them.
In extremely rare cases, you will get a Magi child that develops complete mastery of two magical abilities as well as a fully honed Talent. These individuals are always bonded to another to help their control and will, due to the rarity of their abilities, invariably have huge political as well as magical power. For this very reason, the elite of the Magical community, try to organise marriages to try and breed power into their families. Therefore, when their powers develop, all children are presented to the council so that the correct actions can be taken.
As magic is prevalent, those people who never develop any magical ability tend to find themselves marginalised and find it much harder to pursue a normal life. Despite the existence of strict Anti-Discrimination laws that apply to all aspects of life, those who are public about having no magical ability, tend to find it harder to get and keep jobs as well as pursue relationships. This has led to a culture of those who have no ability to keep it a secret. This is easier than it appears as there are also laws about magic in public without the proper authority.
The governments of each country on earth, although they tend to differ depending on the culture, are usually split in two. In the United Kingdom there is the Prime Minister, the House of Commons and the House of Lords. These are responsible for all Non-magical laws and governance. The magical side is led by the Royal Family who head the Magi Court and all magical decisions are made by the Council of Magi. The Magi Court is made up of magical families, most of whom have had seats at Court for centuries. Occasionally others are invited to join, but the court does not hold any real power any more. The Council of Magi is made up of representatives of all magical families. All the older families represent themselves and there can be a lot of political manoeuvring when the lesser families try to form alliances to increase their power. A lesser family cannot be cast out by one of the older families, but they can choose another family to represent them. In the United States, there is a similar governmental setup. The non-magical side is similar to the world we know. They have a President and the two houses of Congress. As with the UK, they are also hampered by the fact that they are prohibited from legislating anything that involves magic. So while they are technically in charge, they still must refer to the Magi Council in all magical matters. The US Magi Council is almost identical to its counterpart in the UK and politics plays just as big a part with the various families vying for power with each other. The US Magi Court, is also virtually identical to the one in the UK, except it is headed by the Chancellor, who is elected for a 5 year term, rather than the Monarch who inherits the title.
The US has strict rules regarding magical ability. So when a Magi's ability begins to develop at about age 6 they are taken to the Magi Council where their abilities are measured. Most are returned to their families, with those who need further instruction are assigned a teacher. For those who need Bonding, they are introduced to others of their own age and power level in the hope that they can be Bonded, though this is far from certain. Some of the more powerful families try to manipulate this by forcing a Bonding between their children, though this is a dangerous thing to try and more than one child has been killed or seriously injured during an attempt to do this.
If, for some reason, a child is unable to be bonded, then they forfeit certain of their rights. They are unable to represent their families at Court or take a seat on the Council, they have to be careful about interacting with others and often cannot even touch anyone else. If they are lucky enough to develop a Talent, this will be unaffected by their magical problems so they should be able to use it to live a relatively normal life.