Cheryl had accused Rebecca of having a drinking problem, and was taking steps to gain custody of the 15-year-old. Paul’s will indicated that he wanted his mother to have custody.
Remembered: 'Dynasty' Kate O'Mara Dead at 74
Now, Cheryl and Rebecca have settled the matter out of court, reports E! News.
A source explained, "Meadow will live with her mother and they will be getting a place [in California] and the agreement does involve both the guardianship and estate issues.”
Paul Walker: Sheriff's Office Reveals Cause of Deadly Crash
Cheryl "won't gain any control” in terms of custody or the $25 million that Paul left for Meadow. The teen is said to be “happy” with the agreement.
TMZ reports that Meadow had been living with her grandmother since last August, three months before Paul’s death. Rebecca moved in with them after Paul’s accident.
When Mrs. Walker filed for legal guardianship last week, Rebecca is said to have become upset and moved with Meadow out of the family home. They are staying nearby with a friend.
Rebecca, who previously lived in Hawaii, was charged with DUI in 2003 and is facing another DUI charge from 2013.