Paul Walker

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Paul Walker can rest in peace now that his affairs have been settled.

The late actor's mother, Cheryl Ann Walker, filed paperwork March 20 to become the legal guardian of Paul's daughter, Meadow Walker, and to oversee the estate he left the 15-year-old, valued at $25 million. She alleged that Paul's ex-girlfriend, Rebecca Soteros, has a drinking problem.

Public records show Soteros has a DUI conviction from 2003 and another charge pending in Hawaii, though sources have told us they expect the case to go her way.

Paul, who tragically died in November 2013, had stipulated in his will, which was originally drawn up 14 years ago, that his mother should become Meadow's guardian.

The hearing set for March 27 has been averted, E! News can exclusively report. "As a result of a family meeting yesterday, an agreement has been made between the parties and attorneys in the case," a source says. Specific details of the agreement were not provided. "The good news is that things are getting better for everyone involved," the source explains.

"Parties involved are trying to resolve whatever the issues are so that this matter goes off calendar," Cheryl's lawyer, Bela G. Lugosi, told E! outside the courtroom after the planned hearing was officially removed from the calendar.

Per the agreement, the source reveals, "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."

Registered nurse Cheryl Ann, meanwhile, "won't gain any control." Meadow is said to be "happy" with the agreement.

Cheryl Ann's prior claims that Soteros abuses alcohol are unfounded, an insider recently told E! News. "It's just crazy how people blow things out of proportion. She doesn't have a problem or a serious drinking problem," the insider said. "Rebecca is a great mother and Meadow is a very happy child."

Soteros has a DUI hearing scheduled for May 2 in Hawaii.

—Additional reporting by Claudia Rosenbaum

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