This type of dream (about ancestors) sometimes speaks about their legacy or experience that they have left to us. It is wonderful to talk to an old man or woman who is full of God, full of wisdom, and full of experience. We can listen to them. However, the opposite is also true. We sometimes listen to our senior people and ancestors (books that they have written or things that we have heard about them) that are not good advice or good information.
This is the case with your grandmother Kathy. But it is wonderful to see how you dealt with this in the dream. You did not accept her legacy. You rejected it and even taught your family to accept and cling to the opposite, and, you did it all in love without offending your grandmother. This is how it is supposed to be done when people who are respected and adored by us, unknowingly teach us wrong things.
In the dream, being frail, almost slipping, and being so light, when she sat on your knee, speak of her spiritual shortcomings. The scene flowing into this colorful happy atmosphere with so many resources, speaks of your legacy. You are not like your Grandma. You are really full of God and wisdom and you have already and you will leave a wonderful legacy to your children and grandchildren.
I do not know what triggered the ream. If you can remember, you will know exactly what this dream was all about.