Folded note put in item of luggage by daughter (7)
I believe the answer is:
creased
'folded' is the definition.
(creasing is a kind of folding)
'note put in item of luggage by daughter' is the wordplay.
'note' becomes 're' (as in do-re-mi).
'put in' indicates putting letters inside.
'item of luggage' becomes 'case' (I've seen this before).
'by' is a charade indicator (letters next to each other).
'daughter' becomes 'd' (genealogical abbreviation).
're' inserted within 'case' is 'crease'.
'crease'+'d'='CREASED'
(Other definitions for creased that I've seen before include "Groovy" , "Needing ironing" , "Needing to be ironed?" , "Wrinkled, rumpled" , "Folded" .)