Michael Jackson’s three children will remain in the custody of the late pop star’s mother, Katherine Jackson. Katherine’s attorney, L. Londell McMillan, was on the “CBS Early Show” Thursday morning and said that his client and Debbie Rowe, the biological mother of Jackson’s two oldest kids, have come to terms. The agreement appears to head off what could have been a bitter custody battle between the two women. McMillan told the “Early Show” the agreement is in the best interests of the children and is, quote, “not a money deal. There’s no situation better for these children then to be raised and reared under the care of Mrs. Jackson.” 
Rowe gave up custody of 12-year-old Prince Michael and eleven-year-old Paris in 1999. Under the terms of the agreement she will be granted visitation rights. Rowe has requested that a psychologist help Prince Michael and Paris adjust to having their biological mother in their lives.

By all accounts, Jackson matriarch Katherine Jackson has been the rock for family members – including Michael’s three children – in the weeks since the King of Pop’s death. Now, it’s her turn to grieve.  People.com is reporting that

“It’s finally hit her,” says a source close to the family. “She’s been crying a lot. Her eyes are constantly red. She can’t believe Michael is gone.”

While Prince Michael I, 12, Paris, 11, and Prince Michael II ["Blanket"], 7, remain surrounded by cousins at the Jackson family home in Encino – having summer funtime that includes swimming and water balloon fights – Katherine is struggling to hide her sorrow, says the source.

“She feels horrible for those children,” the source says of Katherine, who was awarded temporary custody of the children pending a hearing scheduled for July 20 [and was named in Michael's will as his pick for primary guardian]. “[But] she’s determined to remain strong for them.”

The source says Katherine is fiercely protective of all her family.

“She is very upset about all the Joe bashing and all the things that are being said about him,” says the source. “Michael’s kids love Grandpa Joe. Hearing him trashed makes Katherine really angry.”