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Once the money is paid to you, you can do anything you want with it, but you would be liable for the gift tax if you gift the money to your in-laws.
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In the US - gift - is not taxable income for the recipient and you do not need to be reported to the IRS.
There is no any amount limit. Please see for reference IRS publication 525 page 31 left column - - http://www.irs.gov/pub/irs-pdf/p525.pdf
Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you.