Kara Kennedy was born on February 27, 1960 in Bronxville, New York. She married Michael Allen on September 9, 1990 in Centerville Massachusetts. They were divorced. Kara and Michael have two children, Grace Kennedy Allen, born September 19, 1994 in Washington D.C. and Max Greathouse Allen, born December 20, 1996 in Rockville, Maryland.
Kara worked for Very Special Arts, a creative counterpart to Special Olympics founded by her aunt Jean. Kara was also on the board for the National Organization on Fetal Alcohol Syndrome along with her cousin William Kennedy Smith, MD.
Kara is the the only daughter of Ted and Joan. Kara was fighting lung cancer as of 2003 and was in remission. She reportedly died of a heart attack, perhaps contributed to by many years of chemo.