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Requirements for transferring new iPhone 5 to someone else

I just received a new iPhone 5 for my 2-year upgrade but am considering selling or giving to one of my kids for Christmas since money's tight.  I'd still like to keep my 2-year plan.

What must do before selling/giving to someone else?  Do I need to contact Verizon and/or activate?  If so, do I have to open the box?  I'd prefer to keep sealed to preserve value in either situation.

Please advise.  Thanks

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