Silent Night, Deadly Night II
(1987)

While finishing up with telling Dr. Bloom (James L. Newman) the last series of murders he committed that landed him in the mental hospital, Ricky (Eric Freeman) kills him. He then escapes the mental hospital, kills someone dressed as Santa and takes his suit, gets an axe, and then heads to Mother Superior’s (Jean Miller) home. After stalking and terrorizing her, he finally kills her by decapitation. 

The police and Sister Mary (Nadya Wynd) then arrive, and they find Mother Superior sitting upright in her wheelchair upstairs, but when Sister Mary touches her, her head comes off. She screams and faints, and then Ricky emerges with axe held high, but the cops gun him down. Sister Mary comes to and screams again upon seeing Mother Superior’s severed head, and Ricky opens his eyes, indicating that he’s still alive.

Thanks Tornado Dragon!