The article before Grandma is not necessary. Yes, Grandma can be capitalised.
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ReegisIs it grammatically correct to omit an article before Grandma?It would be incorrect to put an article there. We don't put articles before names unless "the" is part of the name or we want to emphasize the name for a purpose such as sarcasm.
ReegisPut clean socks on before we go to visit your grandmother.That is quite formal. It's either to impress on the kids that grandmother must be respected, or perhaps indicating an "unfriendly" or formal relationship.