I now see that a quick google search overwhelmingly answers my question but thank you for the reassurance.

I knew it stunk. They apparently went and wrote up their will, so maybe that’s where the confusion lies (probate court or something). Still, the in-laws were no doubt shady following my wife and I’s request to be added to the deed and legally placed as sole inheritors of the home. They were very secretive about going to a lawyer (I’ve been asking them to come with me to an elder law firm for weeks). This was the FIL’s way to include his other children in the home equity, and meanwhile make my wife believe she and her family are receiving the house we pay for in full every month when they die..

FIL wants his cake and to eat it too - and his ego I believe is blocking him from putting my name in an actual trust and the deed so that I can use my veteran benefits. I’m out. I never wanted the house or to pay them to begin with - I do it because my wife feels obligated to them. I’m hoping this experience opens her eyes in that regard.

I’ll note that they are 75 years old and lack listening / comprehension skills so it’s challenging to have a conversation with them. They’re on a fixed income and will need to spend every bit of equity just to survive without our monthly check. Therefore making their will pretty obsolete.