(Realtor.com) - Katy Perry’s $15 million Montecito, CA, mansion purchase has turned into a yearslong legal standoff with the family of 84-year-old seller Carl Westcott.
While it may seem like a saga reserved only for the rich and famous, at its core, the conflict is one that many families are facing or may soon face in the decades to come: What happens when an aging parent makes major decisions while potentially incapacitated?
As of 2022, baby boomers own 41% of all U.S. homes, according to the Mortgage Bankers Association. As this generation ages, and their risk of age-related illnesses increases, more families may find themselves navigating high-stakes property decisions without a clear legal path.
That’s why taking early action is so important, says Aimee Arce, an associate in the Trust & Estate practice at Fox Rothschild LLP.
“Having the proper estate planning documents in place with the appropriate fiduciaries is crucial,” she explains. “Without these important documents, your loved one may need to be deemed incapacitated by the court under these circumstances before you have the power to make decisions on his or her behalf.”
If you stand to inherit or sell a family home, here’s what you need to know.
What happened in the Perry-Westcott deal
Although a judge ruled in late 2023 that Perry’s business manager lawfully purchased the $15 million Montecito mansion from Westcott, the case isn’t closed. Perry’s team is now seeking over $5 million in damages, primarily for lost rental income during the yearslong court battle and for alleged repairs needed to restore the property.
Westcott’s family, however, says the lawsuit should never have happened in the first place. They argue that the 1-800-Flowers founder—who had been diagnosed with Huntington’s disease and was recovering from major surgery and taking pain medication at the time of the sale—lacked the mental capacity to understand what he was agreeing to.
“An apology would be nice,” said his son, Chart Westcott, in an interview with the New York Post. “[I’m] not expecting it. I don’t think it’s in her nature to take responsibility for anything.”
The optics remain uncomfortable: a pop star demanding millions in damages from a “dying man” by his son’s description, who tried to reverse a sale he may not have understood.
It’s a reminder that even airtight contracts can come under scrutiny—and that without clear estate planning, high-stakes property disputes can escalate when loved ones are most vulnerable.
Why the case resonates with everyday families
The Perry-Westcott story is more than just tabloid fodder. Millions of Americans are navigating aging, cognitive decline, and real estate decisions at the same time.
“The legal troubles of Katy Perry reflect what I often see in ordinary residential real estate deals,” says Kristen Herhold, director of public relations at Clever Real Estate. “The most expensive thing about selling the family home isn’t the list price; it’s the risk of a battle.”
“One contested signature or misconstrued agreement can lead to years of litigation,” adds Jacob Naig, a real estate investor. “Even though the stakes may not be $15 million, the losses—such as missed time, strained relationships, and destroyed inheritances—can be just as devastating for regular families.”
He recommends acting as if you are before a judge when making any decisions.
“That mindset results in cooperation, documentation, and clarity,” which he says are the best defense in any dispute.
Herhold agrees: "There is no telling how fast a dream transaction can turn into a nightmare when it is not at all clear who is really in charge of approving a decision, or whether that person can even make one.
There’s also the matter of mental capacity—whether the seller understood the nature and consequences of the transaction. Crucially, a diagnosis alone does not automatically mean a person lacks capacity.
Courts weigh specific evidence, such as the timing of a diagnosis relative to the deal, testimony about the individual’s clarity or confusion during negotiations, and whether outside medical or legal professionals evaluated the person at the time.
For ordinary families, the lesson is clear: Capacity disputes can turn a sale into years of litigation. Without documentation, independent assessments, or estate planning tools in place, even a routine home sale can devolve into a fight as bitter—and expensive—as the one now playing out in Montecito.
How to avoid the Perry problem
You don’t need a $15 million mansion to end up in a real estate nightmare. If you own a home or expect to inherit one, every expert we spoke to had the same advice: Put a will or trust in place as early as possible.
But don’t just “set and forget” them. “It is also important to regularly review and update your estate planning documents as circumstances change,” advises Arce.
Designating a power of attorney or setting up a revocable trust allows someone you trust to step in when a loved one’s ability to manage their affairs begins to decline—whether due to age, illness, or medication. Without that legal authority in place, Arce warns, you may need to go to court to have them declared incapacitated just to make basic decisions on their behalf.
“Elder financial abuse is an issue,” she adds. “You need to be vigilant to protect your loved ones.”
If someone is already struggling, don’t delay, Arce says.
“It is important to act at that time by having the proper estate planning documents put in place, if possible, based on your loved one’s mental state, or by initiating guardianship proceedings,” she explains. “You should also maintain thorough records and documentation, and consider mediation if disputes seem likely.”
But the most important lesson, Ryan Dossey, co-founder of SoldFast.com, says, is never sign a document you don’t understand or have counsel on.
“Purchase and sale agreements are binding, and a buyer could sue for specific performance, forcing you to sell a home you've had a change of heart on selling,” he says.
More wealth, more conflicts
For most aging Americans, their home is their single biggest source of wealth. As property values have climbed, so too has the financial incentive—and the emotional weight—attached to decisions about selling, inheriting, or holding on to a family house. Combine that with the reality of aging-related cognitive decline, and it’s easy to see how disputes like the Perry-Westcott case can happen.
What makes the saga resonate isn’t the celebrity drama but the deeper reality it exposes: When families delay hard conversations about estate planning, the result can be years of costly, painful conflict.
Without clear documentation, open communication, and early planning, even an ordinary sale can spiral into a bitter legal fight. The Montecito mansion dispute may involve millions, but the cautionary lesson applies everywhere.
Allaire Conte is a senior advice writer covering real estate and personal finance trends. She previously served as deputy editor of home services at CNN Underscored Money and was a lead writer at Orchard, where she simplified complex real estate topics for everyday readers. She holds an MFA in Nonfiction Writing from Columbia University and a BFA in Writing, Literature, and Publishing from Emerson College. When she’s not writing about homeownership hurdles and housing market shifts, she’s biking around Brooklyn or baking cakes for her friends.
By Allaire Conte
August 29, 2025
