I grew up around smokers and have many smoking relatives, plus I tend to be pretty lassez-faire about a lot of things, so I'd personally insist on handwashing but not changing clothes. In my experience, hair absorbs smoke more than clothing does, and you can't really ask her to wash her hair every time she smokes. Of course, any reduction in exposure is better, and as others have mentioned, there's the possibility of causing a rift. In the end, I think having access to a grandparent is more important than any risk from occasional exposure to "third-hand" smoke. I'd personally be fine with smoking outdoors and washing hands afterwards. (I do change my own shirt.)
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That said, I *don't* think you're being unreasonable. The child is yours and you are perfectly free to place any restrictions on access to her that you please. You are her parent and you make the rules. It's probably an unpopular viewpoint but I don't think anyone is *entitled* to contact with your child except for her parents and (if applicable) minor siblings. Your kid, your call. But I'm a hardass about some things, even if I don't worry about exposure to XYZ (whether it's a little third-hand smoke, perfume, TV, processed food, whatever). Most people would probably think I'm too restrictive in other ways, like I don't allow my in-laws to spend time alone with my kids when they're very young and I
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Do what you feel is right, and naysayers (as in your in-laws, if they disagree -- not posters here) be damned. But I'd personally value contact with a grandparent over whether they had some smoke residue on their clothes, if it came down to that. Assuming the grandparent is otherwise awesome, anyway. I do think that once you've made a decision about this, you should absolutely stick to your guns. But I'm extremely stubborn, so....
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--K