What you are speaking of here in known as a "life estate". This is a common practice wherein a homeowner designates who is to inherit their property upon their death. However, while the inheritor becomes the titled owner, someone else known as the "life tenant", has the right to the use and possession of the house for the remainder of their life, at which time the party who inherited takes the property over outright. If this is not an acceptable arrangment for your wife, she can "disclaim" her inheritance and renounce any rights to the property.