Yes he can.

But the level 1 won't be able to use it until he reaches the gear level. Check the tooltip to see what level the gear is.

One obvious restriction: level 1 character can't equip level 35 gear. But assuming you pass down appropriate level gear, the only problem is bound armor. If it's crafted or unique, it will likely be bound to your account. Not an issue if you trade between your own characters, but you won't be able to give it to another player.

It depends.

If you're talking about giving stuff to another player, you can only give stuff that isn't bound to you. So anything that is bind on pickup can't be given, nor can anything that is bind on equip and that you have used.

If you're talking about giving stuff to a lower level character on the same account as the higher level, then you don't need to worry about it being bound or not.

Of course, setting the bound/not bound issue aside, the level of the items is a consideration. In order to use a piece of equipment, you have to be as high in level (or higher) as the item. So a level 35 character can give a level 1 character a full set of level 35 gear, but until that level 1 has leveled up to 35 he won't be able to use any of it.

Edit: wow, it took me way too long to write that, and I got ninja'd by a bunch of people lol

& once you dye armor, its bound to your account...
so you can share between your own characters, but no one else.