RE: Are retired traits still passed down?
Remember, it has to be a BOX (or live cat still young enough to breed).
If it's a box-giver (a delivery pack with food, etc, included) the traits are not set until the box is received. If it should have a paint-job, it will still have that paint-job, but it will not give the now-retired traits it would have had if you had taken it from the package when those traits were not yet retired.
ETA: Yes, that also means the newly removed box can also have traits which were not available when the box-giver was first received. A box's traits are set according to the currently available traits when first rez'd the box in-world. All this applies to STARTERS. Traits for offspring are always fully set by their parents.
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