Michael Jackson Dies

They're coming out of the woodwork -- someone else is trying to lay claim to Michael Jackson's kids.

A woman who goes by the name Claire Elisabeth Fields Cruise has filed three guardianship petitions -- one for each of MJ's three kids -- claiming "I am the biological mother of Prince Michael Jackson II and all of his siblings." Cruise also claims she's married to Michael Jackson "who is now deceased" -- but is also "engaged to Prince Michael Jackson II's biological father."

She also thinks she's the mother of one of Tom Cruise's kids.

Welcome to Neverland.

We just got off the phone with Mark Lester, the man who claims he's not only the godfather to Michael Jackson's three kids -- he may also be Paris' baby daddy, thanks to a sperm donation.

Lester seemed agitated when he spoke with News of the World, expressing concern for Jackson's three kids and complaining he hasn't seen them.

We asked if he might go to court to try and force the issue. His answer -- there's "absolutely nothing malicious" about his intentions and it's "highly unlikely" he'll go to court.

As for whether the Jackson family has shut him out of the kids' lives ... Lester wouldn't answer.

Katherine Jackson's lawyer, Londell McMillan, passes this off as a "genetic lottery attempt."

John Branca (above) and John McClain quietly cashed in the policy -- reports it was worth upwards of $20 million are simply not true. It was a $3 million payout. And here's why it was a swift move -- the coroner hasn't even released the autopsy report yet.

Some life insurance companies are hinky about paying out proceeds until the cause of death is known. Remember Heath Ledger's death, when the life insurance company wouldn't promptly fork over the $10 million because Heath allegedly lied about drug use on the application?

New court documents in the Michael Jackson estate case reveal Columbia Pictures scored the footage of Michael Jackson's rehearsals and preparations for his London concerts ... but the studio is paying a hefty price.

Columbia will create a movie from the footage. Under the terms of the deal, the Jackson estate will get 90% of the profits and AEG will get the remaining 10%.

Michael Jackson's special administrators want the estate to cash in on a song one of his brothers performed at the memorial, but time is of the essence.

In docs filed with the court, lawyers for the estate say they've negotiated a very favorable agreement for the estate with Apple Inc., for the promotion, distribution and sale of the audio and audiovisual recordings of Jermaine Jackson's performance of the song, "Smile" at the memorial service.

They claim there is currently "a heightened demand for such products due to Jermaine Jackson's moving performance during the memorial service, which may diminish over time."

We just got a declaration from Joe Jackson, filed with the court, and Joe makes it clear -- he supported Michael Jackson's decision to make his wife Katherine the guardian of Michael's 3 kids .. and Joe makes it clear he will keep his distance.

Joe says in the declaration: "I have had a close family relationship with these grandchildren since their birth. I do visit the family residence from time to time and will continue to do so, however I will not be involved in raising the children."

Joe continues, "I understand that all decision-making authority regarding the children will rest with Katherine Jackson. Katherine Jackson is a wonderful caretaker and guardian, and has done an excellent job raising our children and other grandchildren."

MJ's mother also denied her husband, Joe, is banned from their Encino home and said Michael's children, who she currently has custody of, are "doing fine."

The family is expected in court this morning -- we'll be there, live streaming the whole thing.

TMZ has learned Debbie Rowe has settled her custody issues over Michael Jackson's children and it doesn't involve a single penny ... but it does involve a shrink.

Sources tell us, Rowe has agreed that Katherine Jackson will be the guardian of Michael's children, subject to the judge's approval.

Rowe will get visitation of the two children she had with Michael.

But here's what's interesting -- Rowe wants and will get a psychologist who will visit the children and help them adjust to her being in their lives on a meaningful basis.

Rowe will maintain her parental rights. We're told the agreement does not specify the amount of visitation.

Katherine Jackson's lawyer is officially squaring off with the two men Michael Jackson selected to handle his estate, claiming the co-executors are intentionally trying to keep Jackson's mom in the dark.

Londell McMillan just issued a statement making it clear -- he wants Katherine to become a co-executor. McMillan claims the co-executors -- John Branca and John McClain -- are not letting Katherine see the agreement Jackson signed with AEG. ... which McMillan says could be a huge source of income for the estate.

McMillan claims the co-executors are imposing unreasonable demands on Katherine -- requiring her to make special promises of confidentiality for the benefit of AEG.

The co-executors have maintained all along they were the ones Michael selected to manage the estate and they are doing their job.

Law enforcement sources tell us one of the theories they're exploring in Michael Jackson's death is that Dr. Conrad Murray administered Propofol to the singer and then left the room, eventually to return to a dead body.

Our sources say when paramedics arrived Michael Jackson was found with an IV in his arm, an IV stand nearby along with an empty IV bag and oxygen tank.

We're told paramedics who arrived on scene say Dr. Murray's conduct was "strange" -- he was "hard to deal with" and was "getting in the way" of emergency responders.

As we already reported, paramedics wanted to pronounce Jackson dead at the house but Dr. Murray insisted they transport the singer to the hospital.

We're told at the UCLA Medical Center -- after doctors gave up on resuscitation efforts because Jackson was clearly dead -- Dr. Murray continued CPR, which some of the UCLA docs found curious.

We've now obtained documents filed yesterday in the Michael Jackson probate case.

The Special Administrators have recovered $5.5 million in cash from a former financial advisor. The documents do not name the advisor.

In the documents, the administrators predict Jackson has enough cash to pay off his estimated $400 million in debts -- and still have money left over for his heirs.

The docs also say Jackson's children are the beneficiaries of an insurance trust established by Michael Jackson. The proceeds have not yet been collected, which explains why lawyers for Katherine Jackson have asked for a temporary allowance.

The Special Administrators expect to generate tens of millions of dollars of revenue from various business deals that are now in the works.

Story developing ...

The court in the Michael Jackson probate case just authorized the special administrators to enter into proposed book publishing agreements.

The deal on the table involves a reprint of Jackson's autobiography, "Moonwalk," with Shaye Arehart Books for U.S. and Canadian publishing rights, Michel Lafon for publishing rights in France, Heyne for publishing rights in Germany, and Heinemann for publishing rights in the United Kingdom.

UPDATE: 2:44 PM PT: How's this for brutal honesty? The documents state, "The Special Administrators believe that it is in the best interest of the Estate for all book publishing agreements to be entered as soon as possible, as sales of the book and profits for the estate will be maximized the sooner the book is released due to the notoriety surrounding Michael Jackson's unexpected death and the resulting heightened demand for such products."

Story developing...

Lawyers for Michael Jackson's estate, along with Katherine Jackson's lawyer, went to court this morning, seeking temporary financial allowances -- and Katherine claims she needs the money to live.

The matter was put off until August 3, when lawyers will all appear in court.

UPDATE: 2:29 PM PT: Lawyers for the estate wrote in a written declaration, "We are informed that Mrs. Jackson was also financially dependent upon Michael Jackson and that other than extremely modest social security benefits, Mrs. Jackson has no independent means of support."

The declaration continues: "Michael Jackson died 4 weeks ago. Therefore, there is an urgent need for the Special Administrators to be authorized to pay family allowance for the benefits of Minor Children in order to ensure that the Minor Children's needs for maintenance and support are met."

The document also says other than social security benefits which the kids have not yet received, they are totally dependent on the estate for their care and support.

Multiple sources in the Jackson family tell us even if Katherine Jackson gets custody of Michael Jackson's kids, Michael's big sister Rebbie Jackson will raise the children.

The 59-year-old singer, who shares a home in Las Vegas with her hubby of over 20 years, has kept a low public profile, but privately she has been deeply involved in the lives of Michael's children.

We're told Rebbie is currently living with Katherine at the family's Encino home and is caring for the kids day-to-day. As for the kids ... they all adore her.

Although the family is divided on many issues involving Michael's estate, we're told there's no argument when it comes to Rebbie caring for the kids. Whether she eventually becomes the custodial parent in name or not, she will end up with the primary responsibility of raising Michael's three children.

Dr. Conrad Murray's lawyer, Ed Chernoff, just released a statement about today's raid at the doc's office -- saying law enforcement officials were searching for evidence "of the offense of manslaughter."

"We can confirm that a search warrant was executed today on Dr. Murray's offices in Houston, Texas. We reviewed the warrant and remained on the premises while the search was being executed.

The search was conducted by members of the DEA, two Robbery – Homicide detectives from the Los Angeles Police Department and Houston Police officers.

The search warrant authorized law enforcement to search for and seize items, including documents, they believed constituted evidence of the offense of manslaughter.

Katherine Jackson wants "a seat at the table" in all matters involving Michael Jackson's estate.

Katherine's lawyer, Londell McMillan, tells us Katherine called him the day Michael died, asking him to come to the house. McMillan says when he showed up the first weekend, Katherine and Joe expressed "concern" over the estate and hired him to represent Katherine's legal interests.

McMillan says Katherine will not challenge the will, but as far as the executors are concerned, he says, "She deserves a seat at the table at a minimum." McMillan would not say if Katherine merely wanted to be named as a third executor or whether she wanted to challenge John Branca and John McClain, the named co-executors.

Sources connected with Katherine claim she has already asked the co-executors to allow her to participate in the decision-making and her request was "rejected."

McMillan says neither he nor Katherine are pushing for Joe to become a co-executor.

McMillan, who worked for Michael Jackson during the last 3 1/2 years of the singer's life, also has repped Katherine on various business matters related to her son.

McMillan says he's "optimistic they can work things out, but I'm prepared to go the distance if Mrs. Jackson directs to do so."