Katherine Jackson reached an agreement with her son's ex-wife Debbie Rowe, the biological mother of Prince Michael, 12, and Paris, 11, over the care of the kids and their younger brother Prince Michael II, aka Blanket, last week.
The case went before L.A. Superior Court Judge Mitchell Beckloff on Monday, when consent forms from Prince and Paris were presented before the court stating their desire to remain with their grandmother.
Beckloff signed off on the custody deal, naming the 79-year-old the youngsters' legal guardian, while Rowe was given visitation rights.
Both parties are expected to return to court for a follow-up hearing on Oct. 2.
During the court session, Katherine Jackson was also granted her request for a monthly allowance from the singer's estate to help provide for his kids.
The amount of the payments was not specified, but Beckloff ruled that Katherine was eligible to claim 83.5 percent of the money requested dating back to June 25 -- when the King of Pop died.
The allowance figures will be reviewed in six months time, while another hearing has been set for Jan. 11, 2010.
(c) 2009 WORLD ENTERTAINMENT NEWS NETWORK LTD. All global rights reserved. No unauthorized copying or re-distributing permitted.