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In the end , it is revealed that Nicolas family is dead and Victor's family is alive. That's is the whole twist of movie, that they are not aware that they are dead and they think others as dead. Refer Wiki


Grace and the 2 children, Anne and Nicholas, are dead and ghosts, but they don't know they are until they found out at the end of the movie. Her husband is also dead. Grace killed her children when she was psychotic and then killed herself. The husband was killed in the war. The 3 servants (Mrs Mills, Tuttle the gardener and Lydia) are also ghosts but they ...

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