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Question: family sharing

My current situation is as follows:

My wife and I have different apple IDs and would like to do the family plan for apple music, we currently have separate subscriptions. If we do the family one, my wife probably will cancel hers. If we do that, would her playlists and downloads erase?

As far as Icloud storage, we both have upgraded them to 200GB, the same question goes for this one, if we do the family plan, is there a way where her data can transfer to the family one?

Thank you in advance!

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User profile for user: tapatio_ldm

Question: family sharing