K
aty Perry's $15 million mansion purchase in Montecito, CA has turned into a yearslong legal battle with the family of 84-year-old seller Carl Westcott. At its core, this conflict is one that many families will face as their aging parents make major decisions while potentially incapacitated.

    As baby boomers own 41% of all US homes, according to the Mortgage Bankers Association, more families may find themselves navigating high-stakes property decisions without a clear legal path. Aimee Arce, an associate in the Trust & Estate practice at Fox Rothschild LLP, emphasizes that having proper estate planning documents in place is crucial.

    The Perry-Westcott case began when Westcott's family argued that he was recovering from major surgery and taking pain medication at the time of the sale, thus lacking mental capacity to understand what he was agreeing to. A judge ruled in favor of Katy Perry's business manager, but her team is now seeking over $5 million in damages.

    This case highlights the importance of clear estate planning for families navigating aging, cognitive decline, and real estate decisions. Experts agree that taking early action is key, as a contested signature or misconstrued agreement can lead to years of litigation.

    To avoid similar disputes, experts recommend putting a will or trust in place as early as possible and regularly reviewing and updating them as circumstances change. 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.

    The Perry-Westcott case is a reminder that even ordinary families can end up in costly, painful conflicts without clear documentation and open communication. As property values have climbed, so too has the financial incentive attached to decisions about selling, inheriting, or holding on to a family house. The cautionary lesson applies everywhere: when families delay hard conversations about estate planning, the result can be years of conflict.

    Experts emphasize that capacity disputes can turn a sale into years of litigation without documentation, independent assessments, or estate planning tools in place. They advise never signing a document you don't understand or have counsel on and maintaining thorough records and documentation to avoid costly disputes.