Nicole Kidman, the kids and the servants are all dead. The intruders are a family that moved in. Kidman killed her two kids out of madness and then shot herself. The servants died more than 50 years ago because of tuberculosis. The living family moves out because they are too scared to live in the house as a result of the haunting of these ghosts.
Factual error: When Grace goes into the children's bedroom to wake them up to introduce them to the new nanny and maid, she takes the only lamp they had with her into the bedroom but light is still reflecting off the nanny and maid as if a lamp was still there. (00:08:20)
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