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Show your husband that there are other ways of honoring a favorite relative, like passing down stories, displaying photos, recreating favorite recipes, passing down keepsakes etc. Tell him that as much as you love how much his family means to him, the name is only one way of doing that, and it's too different from anything you'd pictured naming your child. If he's really stubborn, is there any other way you can incorporate his grandmother's name? A derivation? A last/maiden name as a middle name? There might be a creative way to compromise.
Maybe if you find other versions of the name or what does the name mean maybe you can find another name you like that means the same thing. Does his grandmother have a middle name you like better maybe you can use that name or maybe compromise you pick the first name and he can use santina as the second/middle name. You can also let him know how much his grandmother meant to him but you just don't think the name suits the baby and give him other suggestions.
I would suggest using Santina as a middle name, or finding out what his grandmother's middle name is, and if you like that name better suggest using that name instead. If he insists on using Santina and you like the middle name better, use the middle name as a first name and Santina as the middle name. The argument, "I just don't like the idea of having our baby's name being the same as another family members name." might work for you also.
It sounds like this might be important for him, so why not go with it? As others have been mentioning, you can find a way to compromise that keeps you both happy. Use it for a middle name, use the grandmothers middle name, or find a name that has the same meaning but sounds better to you. While these are the same things that others are telling you, keep in mind of how you might feel if you wanted to pass on a family name that he flat out refused to agree with. If the shoe was on the other foot...Find a compromise!!!
I would suggest maybe taking a part of the name. Like tina. My friends parents had the same problem, they ended up combining both the names into something rare but beautiful.
Why not use the name? It means "little angel". My sister & 2 cousins were named for my grandmother Santina. None of them uses shortened versions or spinoffs. They all love having such unique, Italian name and never used nick-names - not even when they were kids. They loved the attention they got - & still get -from people admiring their beautiful name. My daughter's middle name is Santina, and my cousin just gave it as a first name to her new baby too. Im sure there will be at least one Santina in the next generation of our family in the years to come. I'm on your husband's side!