I agree with you in being upset that they don't want to spend it on the honeymoon. However, like the first poster said, gifts shouldn't be given with strings attached. I agree with that statement. So it looks like you have two choices. 1. Give them the $1000 no strings attached. 2. Set up and pay for the honeymoon - without handing them cash. If a honeymoon is the gift you want to give them, then that is the way it should probably be done.
Um, totally awesome of you either way. What an awesome sister in law you'll make. :-)
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