Here are some suggestions for your sister-in-law to tell your nephew about the bloody dead baby:
"Sweetheart, no one is going to kill you or your little brother. Daddy and Mommy will protect you, because we love you so very, very much. That's what mommies and daddies do -- they love and protect their children."
They said something like that.
The first night
The second night
The third night
and so on....