Where did you hear that? I have heard from other sources that the Dalai Lama has said he would not reincarnate at all. More importantly, there has never been a case where there have been two Dalai Lamas simultaneously. . For some Tulkus, the same soul can be distributed over more than one person, so that one human could be a reincarnation of the body, another of the speech, and a 3rd of the mind. But each Dalai Lama is supposed to be a reincarnation of the previous one, so it makes no sense to say that the Dalai Lama could be reincarnated while the previous incarnation is still alive.
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I just did a Google search. The boy you mention is actually a reincarnation of the Khalkha Jetsun Dhampa, who is the head of Tibetan Buddhism in Mongolia. I had never heard of that Tulku myself, but it is one of the jobs of the Dalai Lama to supervise the reincarnations of Tulkus. It's a weird process, and there is some validity to your concerns about the raising of the boys (sometimes Girls). There was some dicey stuff going on with the selection of the reincarnation of my first teacher. But I don't see any any evidence any of the young Tulkus are being molested.