I want to sell everything my MiL bought my kids

She has fallen out with my husband because she’s mentally lost it. I tried to stay civil and say thanks for my kids presents she sent with my husband’s sibling over Christmas. When I did she lost it at me and told me never to contact her again as she hates our rules and timetables (she tried to invite herself to stay for 3 days over Christmas and we said no, only 1) and that my kids will never get shit from her again.

She’s made digs at me in the past that she feels she always has to buy certain types of toys or clothes to meet my approval. I basically now want to sell everything she has ever bought my kids and just put the money in their bank account for holiday coz I don’t want anything of hers but my husband says that’s too far. Opinions please ladies?

Edit to add- our kids don’t really play with the majority of toys she gets as she buys expensive electronic stuff which they aren’t really interested in. All their toys are always out but they prefer wooden toys or figurines or play doh/Lego and in the summer they don’t play with anything except their garden toys. I’ve tried saying what to get based on what they enjoy but she always goes for the spectacle of how much she’s spent on big electronic toys and then has got pissed when the kids don’t show interest.

Final edit to add- thanks to those few comments who have been understanding. For those of you who are being plain nasty, you don’t know the situation. This is a woman who gets so drunk she blacks out when she knows she should be seeing her grandkids, who constantly buys the wrong size of clothes for them because she insists I’m wrong about what size they’re in, who time and time again has stopped speaking to us and cut us out her life when she doesn’t get her own way. She is completely toxic and treats everyone like shit thinking they have to pander to her needs. I’m not wanting to sell their toys because I’m throwing a strop, I just don’t want her having any hold or foot in our life. My kids show no interest in the majority of toys or clothes that she has bought for them which supported my reason for wanting to sell them. Some of you on here are just plain nasty in how you speak and are just as toxic as my MiL.