The problem is that we're not working with a binary custody or no custody issue deal, life is messy. Its true that no formal paperwork has been filed in any court at this time requesting custody be transferred from Lori. Now lets read between the lines. KW initiated a welfare check because the woman she thinks caused her brothers death, the woman her brother painted as mentally unstable, now wont let her see her grandchild. No one would want their grandchild being raised by a crazy murderer(who has already killed one member of your family), so while there's no formal custody dispute, there is a custody dispute. Even if KW wanted to, she couldnt just file for custody, she might know Lori is bad news, but the courts need more proof. The first step to getting JJ away from what she saw as a threat was to initiate the welfare check, hoping that if Lori was acting strange (like being her bubbly smiley self after a murder in her house) that would go on formal record and would be admissible proof to help Kay get JJ away from Lori.
Lori is not new to custody disputes, she's not even new to this tactic; put the kids out of reach from whoever wants them and wait the system out. She did it with JR and Tylee. Her dad has legal training, and she likely knows that custody matters arent the courts highest priority. From the court records people have found, we know she's hidden Tylee from JR so much that she has to give back the child support he paid because he wasn't getting his legally allotted time with Tylee. She knows that anyone trying to get kids away from their mother is fighting an uphill battle and its best to let the other party tire themselves out while you just go on with your life.
I think she saw several things that made her worried KW's grab for JJ might have some teeth. Her extended absence from JJ for months, Charles formally requesting a mental hold on her, Charles getting murdered in her house, after filing paperwork with his lawyers saying Lori wanted him dead, perhaps even the crazy ranting transcended being recording Kay said Charles had. For whatever reason Im guessing she thought distance wasnt good enough, she'd have to hide the kids until everything blew over. I dont think she had any idea that it would turn into national news. Probably just thought Kay would hound the court system for years and she'd just keep conveniently missing the welfare checks that might move the case along.
The kids are either hidden or dead, and we're all rooting for the former. Women who kill their kids generally are mentally unstable to the point they cant hide it, in some sort of financial distress that would make them think they have no way to care for the kids, under the impression that the kids life will be so bad they'll be better off dead, or newly saddled with the responsibilities of childcare and upset their carefree life has changed. Lori doesn't fit any of those. Her actions and demeanor suggest nothing is bothering her, so she's either in the pantheon of the sickest of sickos, or she knows the kids are OK.