B.G.
My MIL still wants to be Santa and the Easter Bunny. I just let her. She does Easter baskets for all the grandkids, and she writes Santa on most of the presents. My kids are too little to understand, but my nieces know. Even before they knew the truth about Santa, they knew what my MIL was doing. They thought Santa really did bring all the gifts that were from their parents and that Grandma just wrote Santa on hers. When they asked me, "Why does Grandma do that? We know it's from her!" I just said, "Oh, Grandma just gets caught up in the excitement."
I thought it was weird at first, but I've just decided not to care. Grandma's going to spoil them whether she writes Grandma or Santa. I just let her and tell her thank you, because money is very tight and it's nice that we don't have to spend too much on Christmas.