Nursery wanted to test ds1 when he started on his third birthday as he was reading happily and could work out multiplications, additions, and subtractions to work out change from hundreds.
the LA refused flat out and said there was no such thing as 'gifted' until yr r.
Is mil a qualified teacher? Most schools have a hissy fit if unqualified nursery staff start 'teaching' as apparently they don't know how to do it and aren't qualified to do it. (This may be mere protectionism, after all, parents aren't qualified teachers and home edders have literate and functional children lol)
All three of mine are gifted. None of them have had Ieps for being gifted in nursery (including the two who taught themselves to read at 2 having started decoding and memorising the alphabet and basic phonics at 18 mos, the one assessed as having a reading and comprehension age of 15 at 5, and the one doing multiplication and random arithmetic in the hundreds in his head at 3.)
I would be sceptical tbh. Not because Ds isn't bright, but because there is no need to stretch him at this point in a formal way. He will teach himself and learn enough through play. He isn't going to suddenly become ungifted just because he hasn't got an iep and a nursery nurse getting him to write lines.
Some kids do need more learning opportunity. Some kids have behavioural issues, argue with their peers, and find it hard to form meaningful relationships with other three year olds because they want to discuss the inner workings of a combustion engine, or debate religion v evolution, and get really stressed when their peers snatch the book they are reading. If Ds is happy, and learning to socialise with his peers, then I would let him be. He can still read, draw and try to write stuff - three year olds do. But he doesn't need a nursery teaching him. If he's bright he will just pick it up through osmosis anyway.
Fwiw, there's Nowt wrong with an iep in school. It's a perfectly acceptable way of setting targets for gifted kids. All three of mine have had them in school. (All three have been officially tested btw - which I assume Ds hasn't)
I would also be wary of mil setting herself up for flak from other parents. I might get a bit eye rolly myself if I knew the owners grandson was getting special treatment. 