OP, Your in-laws must have received some gift in the past from the cousin sis side relatives which you might not be aware of. When the appropriate time came they would have just gifted back. It is quite normal. Even if they don't have money they would need to do such things with distant people for society' acceptance. But with their own son they need not be so formal. They can gift whenever they have money. By the way , are they working? May be they would gift their grandchild when they see him in person. You are in 2 different countries right? Yes,it was wrong on their part to ask what your parents are gifting.