Lily is all smiles during the family dinner, even when she blurts out Carol's secrets — that she slept with William, that he's Lola's father, and that she committed fraud by asking Ivy to pose as her daughter. Carol isn't worried, convinced that Ivy would never come forward because she'd need to protect herself, until Lily summons Ivy and the police from the other room. By giving a statement, Ivy clears her own name, and Carol is immediately arrested for fraud.
Still, Lily is the only person who seems to be happy. Serena is angry at William for rushing to Lola's side when he'd ignored her for years, while Lola is mad at Lily for all the scheming. Oh, and Lily convinces William to go to the jail and get Carol to sign over her half of the estate on Lola's behalf — but rather than signing it over to Lily as planned, William runs off to JFK. Happy family, indeed.