Packer had relocated to Los Angeles by 1976 where he married his second wife, Kate Clifford, a former model from Brisbane, on 7 July 1977. By 1987 Clyde and Kate were living in the Santa Barbara suburb of Montecito. Clyde developed heart and kidney problems. He was on a dialysis machine for treatment and had a kidney donated from his architect. From 1999 he had been bedridden for two years. (Kerry also had heart and kidney problems and obtained a new kidney from his helicopter pilot.) Robert Clyde Packer died on 8 April 2001, aged 65. He died of heart and lung failure. A memorial for Packer was held in Sydney on 16 May 2001 with a eulogy "Dear Clyde" which was written by Barry Humphries and read by Packer's son, Francis. Other speakers at the memorial were John Laws, Harry M. Miller and Peter Coleman.