"Larry says that it's important Dannielynn knows about her mom," his older sister, Judy Birkhead tells Us.
"He's always telling Dannielynn how much he loved Anna and how great she was."
Birkhead, 34, has put photos of Dannielynn's mom everywhere. "He'll point at pictures and show Dannielynn videos of her too," Judy says.
Smith also set aside keepsakes for her daughter - including letters she had written for her - that Birkhead is saving for when the baby grows up.
Longtime friend Jane Rose-Zupetz tells Us, "When Anna was pregnant, she painted a lot for Dannielynn. Larry will give her those, also."