Meghan Markle and Prince Harry Trade Family Christmas Gifts with Kate Middleton and Prince William
Gifts have been sent back and forth between the families, PEOPLE has learned
The Sussex and Cambridge families have been sending each other Christmas presents ahead of the holiday, PEOPLE has learned.
Presents have been sent back and forth between the entire royal family as well as they experience their first socially-distanced Christmas amid the ongoing pandemic.
Meghan and Harry, along with their 19-month-old son Archie, are gearing up to ring in their first holiday season in their new Montecito home in California, and the family is "excited to decorate for Christmas," a source previously told PEOPLE.
"It is so difficult. We are still trying to make plans," William said during his recent Royal Train Tour alongside Kate. "It's difficult to know what to do for the best."
The Queen, 94, and husband Prince Philip, 99, will stay at Windsor Castle, where they have spent much of their time in quarantine since March. This year will mark the first time since 1987 that the Queen will spend Christmas at Windsor rather than Sandringham.
A royal source tells PEOPLE, "They are fortunate to spend Christmas with their family every year, but they understand that their family will have competing demands over the Christmas period and are content to have a quiet festive season this year."
While Prince Charles and Camilla, Duchess of Cornwall have plans to visit the Queen and Philip at Windsor Castle at some point during the holiday period, it is not yet known whether William, Kate and their three children will be paying them a visit.
"Like everyone, their hope is that normality will return in 2021," the source adds. The Queen and Philip may still see some members of their family, "but they understand that they have competing demands."
The royal siblings excitedly made their red carpet debut last week at a Christmas pantomime performance at the London Palladium. The children's grandmother, Carole Middleton, also shared that the trio would help decorate her Christmas tree via video call.
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Meghan and Harry's son Archie has also experienced a festive season. The family marked Halloween by taking Archie trick-or-treating and his grandmother, Doria Ragland, joined in for the family's first American Thanksgiving.
"They are very happy," an insider told PEOPLE. "Archie is thriving and growing quickly."