MORGAN: Kathy, when we come back, I want to talk to you about your very good friend, Michael Jackson.
MORGAN: Back with the Hiltons. Kathy, this is fascinating. A lot of people claim to have known Michael Jackson. You actually went to high school with Michael Jackson. And you stayed close friends with him right until the end of his life.
And you've never really spoken about him much in public, not that I can see. Tell me about your relationship with him.
K. HILTON: We met when I was 13 and he was 14 and developed a friendship and a bond throughout the years. And we always kept in touch. And then when I moved to New York and he would come, and we'd always go to his concerts. And, you know, we started with -- we used to make prank phone calls together. And we were little kids.
We had a really great time. And then he came and visited when Paris was born. And then he ended up living at the --
MORGAN: He was there when Paris was first brought into this world. K. HILTON: She was just a few months old.
K. HILTON: He ended up moving into the Waldorf for six months when we were living there for eight years. And right before he died, he was at the Bel Air Hotel, where we were living while we were renovating our home. So he was there about three or four months.
So we got to spend, you know, great time.
MORGAN: We talk about misconceptions with Paris. What were the misconceptions about Michael, do you think?
K. HILTON: Well, there was not a kinder, more generous, loving, sweet, smart, smart -- I can't -- the most wonderful father. At the Bel Air, he did not have any nanny at all. And when I'd go to pick up the kids to take them somewhere, he'd be brushing their hair and buttoning up the sweater and just so warm and wonderful.
And I just -- I love him. His whole family, they're a really wonderful, beautiful family.
MORGAN: Where were you when you heard he died?
K. HILTON: I had just come back to the hotel.
MORGAN: How did you hear the news?
P. HILTON: My assistant told me. And I literally fell on the floor. And my sister came and picked me up and we went directly to the house, because I thought the children would be there.
MORGAN: Did you go to the hospital when you --
K. HILTON: Yes.
MORGAN: What was the scene there?
K. HILTON: The children and Mrs. Jackson and all the brothers and sisters and just everybody was in this room. And just crying and hugging each other and just in a daze.
And this is a father that was so with his children. He's dedicated since they were born to raising and being with them. And then Latoya and Randy took me in to say good-bye.
I think if I hadn't, I would never quite in my head believe. Because even though he's a friend, he was such a powerful person.
MORGAN: Was he still alive when you --
K. HILTON: No.
MORGAN: Did you say anything?
K. HILTON: Yes.
MORGAN: What did you say?
K. HILTON: I rubbed his head and his arms and his legs and his feet and I just -- I told him I love him so much and, you know, whispered some funny things to him, and that was it.
MORGAN: Incredibly sad end to his life, wasn't it?
K. HILTON: And he was so fabulous at the hotel. Up early every morning, playing with the kids. Really shocking.
MORGAN: Paris, did you know Michael well?
P. HILTON: Yeah, I grew up -- just my mom -- I remember -- one of the first memories I have of him was when my mom took us to the music video set of "Thriller." And we have the pictures still. I just always loved him. I used to go to his concerts and he'd bring my sister and I on stage and we'd sing up there.
I just always loved him so much. He was such an amazing man.
MORGAN: He said to me, Kathy, I'd like to go see Paris. I said, well, she's out of town. Well, I'd like to see her recording studio. And I said, OK, all right. And I said just jump in the car. It was like 8:30 at night.
I said we don't have to get any security right now. Let's just go. Rick will drive. You jump in the back. And so the kids came and we all went up and we were up there at Paris'.
And he loves to look at everything. So he's looking at all the pictures on the walls. And he loves art. And in her closet and at all her collections of Pinocchio and Tinkerbell and all that.
And he said she reminds me -- she -- she's -- what did he say? Something like, she reminds me sometimes a little of the way certain things that I like. And he loved the gold and the frames and --
P. HILTON: You took him in the studio.
K. HILTON: I took him in the studio and he got to see everything.
MORGAN: And he was an extraordinary talent, wasn't he? And he took your name, of course, for one of his children. How did that make you feel?
P. HILTON: I was honored.
MORGAN: Was it a direct result?
K. HILTON: You know, Latoya will tell you the story. When we were younger, we all would say that whoever has the first girl is going to name her Paris. And I had the first girl. So I got to do it first. And then when he had his daughter -- MORGAN: Have you seen the children much since he died?
K. HILTON: I saw them a couple weeks ago. We went out and had dinner. And I can't believe how big they are. We went over there about three weeks ago.
MORGAN: And are they being well looked after?
K. HILTON: Oh, are you kidding? They're in a new house and Mrs. Jackson is there. They have an incredible, beautiful home, great security. And we had a big family dinner. They went up and did their homework and came down and showed grandma and had their bath and said good night, grandma, I love you. And it was great to see them.
MORGAN: There's a kind of feeling because I guess of the impending court actions involving the doctor and his death and everything else, that he'd become sort of a pathetic character in the end, addicted to all this medication and so on. Is that an inaccurate portrayal, do you think?
K. HILTON: Well, I can tell you that when he was at the Bel Air Hotel, there was none -- there was none of that. Because I had -- he was right underneath where I was. And we talked all the time. In fact, if we would be going somewhere in the daytime, he'd say 1:00 down at the fountain. And if I was five minutes late, he was very on top of it.
And he was with his kids. I believe in my heart that as he got into the concert thing, it was hard for him to sleep probably. He was not a drug addict. He had a problem going to sleep.
I mean, this is not somebody that recreationally would abuse something and I guess the levels went up and up and up.
MORGAN: What do you think his legacy will be, Michael Jackson?
K. HILTON: Well, I think that now that he's gone, everybody realizes what a good person, all the wonderful things that he's done for charity. And it's interesting that we don't hear -- well, I won't get into any of that, but he's left three beautiful children.
MORGAN: Who will be his legacy, I think.
K. HILTON: Absolutely.