How will you feel ?

If these things were purchased by your FIL then he is within his legal rights to distribute them as he likes. That this unequal treatment will cause a family rift is the natural progression.
What is the reason for your FIL's behavior? Is your SIL much better off than your BIL? Maybe the FIL is making up for your BIL being a low earner, maybe he just likes him more, maybe he just thinks sons should inherit?
Unfortunately this has come at the cost of family relations. I would be upset too if I were your SIL but I don't see what she can do about it.
Stay neutral and keep your finances protected.

 

Not your monkey . Not your dance. Meaning, stay away from it. As long as FIL doesnt ask for money from you to fulfill their wishes - you should just live your life.
Today SIL may bad mouth her brother, but they are brother and sister - once they patch up, then they will not even remember that they were enemies. The same SIL will at that time say that "badi bhabhi (you) said such n such things about my brother and his wife".

Next time SIL starts the conversation, tell the same thing- Its FILs money, its his wish how to spend it.

 

This woman is so angry with her one brother she is trying to start a fight between the other brother's family and him as well. Dont fall for it.

Inform your h about what his sis told you and sit back. let him deal or not deal with the situation.

Btw, it is possible your h knows that fil is working and neglected to inform you or thought you already knew -something innocuous like that. Even with the gifts they recd. I think your h might have been generally aware that gifting was going on though not to what extent. Chances are high that FIL mentioned it to him in each time but your h neglected to inform you deeming it unnecessary. Especially because you ppl were separately also helping that family financially.

Fact is you have received a voluntary 'full disclosure on acquisition of assets by bil' from your sil but actually nowhere and at no point in time was it obligatory (or mandatory) for you to have recd one or been told any of this information by any of them since it is none of your business, didnt concern you at all and you are not one of the principal parties involved (Principals being fil, your h, your bil and sil). Just chill out, sit back and watch the fun.

 

If I were you, I wouldn't feel anything for this.
As long as the assets are not purchased with your or your husband's money, it should be none of your business. Don't encourage SIL or join hands with her in her path to trouble her own family. Remember blood is thicker than water.
May be inform your husband about what his sister told you as an FYI.

 

Back -off, Ignore and move on .
Distribution of assets that do not belong to you, do not have your contribution should not concern you.

Does it hurt? Yes it does. Can you do anything about it ? Not really

So ignore the whole episode and move on.

 

As long as it's not your hard earned money let it go,i know its easier said than done but still..there is no point in losing peace of mind right?

 

Not your money so no need to worry.

be grateful that you are in position to take not take from others