British-born former model and actress Emma Hemming revealed Mabel, 12 and Evelyn, 10, "know that Daddy's not going to get better."
She added: "They don't know how long Bruce has, so they're trying to cherish the memories they have and create new ones while they still can.
"Creating a pleasant holiday season isn't hard for the family because they are all so used to this new normal."
Emma, 46, who became the 69-year-old Die Hard star's second wife when they married on his private Caribbean island in 2009, is also stepmother to the actor's three older daughters Rumer, 36, Scout, 33 and Tallulah, 30, with his first wife Demi Moore, 62.
They have all united to support Bruce since announcing early last year that he has been diagnosed with the degenerative brain disorder frontotemporal dementia.
Emma recently sparked an outpouring of public support when she reposted video clips online of Willis playing with Emma and Mabel, and carrying them around on his shoulders during happier times.
She said: "They've grown up with Bruce declining over the years. I'm not trying to shield them from it. They know that Daddy's not going to get better."
You may also like
Is Biden taller than Trump? White House photo sparks height discussions on social media
Delhi Police arrest sharpshooter involved in 26-year-old man's murder in Munkda
Akshay Kumar Shares UPDATE On Hera Pheri 3: We'll Start Next Year
Manipur: Protesters target houses of ministers, MLAs over killing of 3 persons, curfew imposed
Gujarat: Court remands eight Iranian nationals arrested with 700 kgs of contraband drugs to 4 days of police custody