There are basically five tests to determine if your grandchildren can be claimed on your tax return.
They are as follows:
They must be your child, adopted child or foster child, brother or sister or a descendant of one of these. (i.e. This requirement is met if they are her grandchildren.)
They lived with you more than half of the year (these exceptions apply).
They are under the age of 19 (unless they are a full-time student. In that case it is age 24. They can be any age if totally and permanently disabled.