Priscilla Presley and Riley Keough Reach Settlement in Fight Over Lisa Marie's Trust: 'Everyone Is Happy'

Lisa Marie Presley's loved ones have reached a settlement in the battle over her trust.

Legal counsel for Priscilla Presley and Riley Keough reached a settlement at a Los Angeles courthouse Tuesday, with Riley's side set to submit a settlement request under seal for both the Promenade and a life insurance trust, PEOPLE confirms.

"They have reached a settlement. Families are happy," Ronson Shamoun, Priscilla's lawyer, told reporters. "Everyone is happy. Unified and together and excited for the future."

Justin Gold, Keough's attorney added, "[Riley] would not have agreed to the settlement if she was not happy with it."

The next hearing and motion for approval is scheduled for Aug. 4.

According to Los Angeles probate attorney David Esquibias, "most families (high net-worth or not) resolve their disputes privately and settle out of court."

"Lawyers are amazingly quick negotiators when they need to be. The parties could have started negotiating yesterday or back in January," adds Esquibias.

At the time of her death, Lisa Marie reportedly had at least $35 million in life insurance policies, according to TMZ.

"A 'life insurance trust' is typically created by wealthy people. It is an irrevocable trust that is funded with life insurance," explains Esquibias. "For someone like Lisa Marie Presley, a primary objective of a life insurance trust is to avoid tax at death.

"For example, let's say Lisa Marie Presley died with a total net worth of $13 million, plus owned a $1 million life insurance policy — a total estate of $14 million," says Esquibias. "Without a life insurance trust, the $1 million of life insurance would be included in her taxable estate — and her estate would pay $400,000 in estate tax. On the other hand, if her $1 million policy was instead owned by her life insurance trust, the $1 million in insurance would not be included in her estate, and no tax is due. That means $400,000 would go to her life insurance trust beneficiaries instead of to Uncle Sam.

"A life insurance trust also provides a great deal of creditor protection to Lisa Marie and her trust beneficiaries," says Esquibias.

Lisa Marie, the only child of Elvis Presley and ex-wife Priscilla, died in January at the age of 54 after suffering a cardiac arrest.

An ongoing trust battle ensued four days after Lisa Marie's memorial in January, when lawyers for Priscilla filed a petition in Los Angeles questioning the "authenticity and validity" of a 2016 amendment to Lisa Marie's living trust.

The change had removed Priscilla and Lisa Marie's former business manager Barry Siegel as cotrustees and gave control of the trust — the Graceland mansion and a 15 percent stake in Elvis Presley Enterprises (EPE), which together brought in a reported $110 million in 2022 — to Riley, 33, and Benjamin.

Priscilla, who claims she didn't know about the 2016 amendment until after Lisa Marie's death, argued it should be voided because of several factors, including the fact that Lisa Marie had not informed her of the changes as required by the terms of the trust. But a friend of Lisa Marie's told PEOPLE at the time that "there's zero question" what her wishes were: "Lisa wanted Riley and Ben to be the trustees" — and for all her children to be the beneficiaries.

RELATED VIDEO: Inside Priscilla Presley and Riley Keough's Fight Over Lisa Marie's Trust: 'They Don't See Eye to Eye'

If the 2016 amendment is voided in court, Priscilla and Riley would be cotrustees.

"Priscilla doesn't want Riley solely in charge, because then she has no say," a family insider recently told PEOPLE. "Meanwhile, Riley doesn't want Priscilla to butt in."

A Riley source added: "It's a very sad situation. Riley is shocked Priscilla is contesting the amendment."

In a Feb. 3 statement, Priscilla maintained she is acting with "integrity and love," and a source close to Lisa Marie's ex-husband Michael Lockwood (who is guardian at litem for the pair's 14-year-old twin daughters) said the matriarch remains close to Michael to "be a part of her grandchildren's lives."

A source added that Riley is focused on her acting career — she stars in Amazon Prime Video's new limited series Daisy Jones & the Six — as well as new motherhood. At her mother's memorial, Riley's stuntman husband, Ben Smith-Petersen, revealed that the pair welcomed their first child in 2022.