Finley and Harper Lockwood, eight, have reportedly been removed from the home of Presley and her estranged husband Michael Lockwood by social workers, and placed in the care of California's Department of Children and Family Services (DCFS).
A trial date has been set for March to determine their future, and Presley alleged in court papers filed as part of her divorce from Lockwood that she found indecent photos and videos of children on his computer.
The 49-year-old daughter of late singer Elvis Presley said of the discovery in the court papers: "I was shocked and horrified and sick to my stomach". She also revealed police raided her former home with Lockwood and discovered 80 of his devices, but these have yet to be fully analysed.
On Saturday, police officers in Beverly Hills confirmed they received child abuse allegations involving the family in the summer, and they referred the investigation to authorities in Tennessee, People.com has reported.
Authorities also confirmed they served a search warrant "at a residence in the City of Beverly Hills that led to the seizure of several items."
The family was visiting Beverly Hills when the allegations of child abuse were made in June, 2016, according to a police statement obtained by People.com. The statement does not specify whom the claims were made against.
After an investigation, detectives found the allegations in question originated from Tennessee and called in the Tennessee Bureau of Investigation to take over. Officers travelled to Beverly Hills and, working with police there, determined no criminal activity took place in Beverly Hills, the police statement said.
Lockwood has denied his estranged wife's allegations, and called her "vindictive".
"It is particularly distasteful that (she) has placed more value on trying to damage my reputation than on the fact that her false statements may be brought to our daughters' attention," he said in court papers filed on Friday.
Presley and 55-year-old musician Lockwood married in 2006, with the singer filing for divorce last June, citing irreconcilable differences. She added in the papers that she has to pay for two nannies to accompany Lockwood as monitors when he visits his daughters.
© Cover Media