We only have to deal with DH's family for the holidays (mine live overseas), which is fine, but it has meant that over the years, we haven't really had to compromise with what they want to do.
What has happened in past years (bear with me):
DH and I get up and do our stockings, and personal gifts to each other.
We head to MIL's house and do gifts with MIL and SIL (they are crazy gift givers - we usually have a room-full of presents)
Next we go to DH's grandmother's for breakfast - yes, it's only about 9am by this point...and do gifts with DH's uncle and cousin.
Christmas lunch is usually at an extended family members house, no gifts involved.
I know we are going to have to change things up a little, and I've rambled on a bit, so congrats if you have stuck with me.
My real question is, MIL wants to have a stocking for DD at her house. This year, I don't see a big issue, she's really not going to know what's going on. In the years to come though, I think we should just have stockings at our house. Especially if it's a "Santa" stocking.
I don't have issues with MIL giving gifts, but I think that Santa should just leave you gifts at the house you live in. Thoughts? (Apart from, "My head is going to explode after reading all that.")
Re: Christmas stockings at more than one house?
DD will have a stocking at more than one house. My MIL has one for her, but it's usually just stuffed with paper & more for decoration than gifts. I think she's put candy canes in them (for the older kids) in prior years, but it's not supposed to be something from Santa.
ETA: When your LO gets older I would just say "mommy & daddy got you a stocking & Santa put things in it. Grandma also got you one & she filled it with *insert items here*."
DH, LO and myself all have stockings at our house, IL's house and my parents house. My MIL makes a lot of gifts from elves, my parents are form themselves....Never santa. I would think as long as your MIL isn't trying to say that the stocking at her house is form Santa I don't see an issue with it.