My mother-in-law wants to "give" money to my wife and her brother to remove capital from her estate in anticipation of nursery home sell-off requirements or death in the future.

Some questions if I may...

1. Can she AND my father in law gove $10,000/year to wife and brother?
2. Is this $10K free from income taxes for the "children"?
3. If in the future, she has monetary needs, and they give her some money (back), what is the effect?
4. Can they also gift teh childrens' spouses? What limits?

Thanks
Steve