I'd quit my job and invest for starters. I'd buy my sister and I a really nice place to live and a separate place for my mom to live so she doesn't have to live in a small house anymore. I'd pay off any lingering debts my family had and then after all that important stuff was taken care of, I'd just buy whatever I felt like (within reason), take more vacations, and donate to charities.
I've gotten various junk gifts from my stepdad's mom, which I usually end up throwing out. There was a funny gift one time, though, where she got me a cute hat but it was sized for an infant! This wasn't even that long ago, either!
Absolutely, at least with the general public. People who are loyal and true to you will generally think of you the same way regardless unless you really did do something really bad.