2 Xbox consoles, 1 Xbox Live account

We currently have 2 Xbox consoles in the house - an Xbox 360 and an Xbox One S. The Xbox 360 was my original console, and I purchased several games on it using my Xbox Live Gold account. Now that I have my new Xbox One S, my daughter wanted to take my old
Xbox 360 with all my old games. She does not have her own Xbox Live account. So I'm trying to figure out how to manage 2 consoles between the family.

The way I see it, there are 2 options.

1) Use my current Xbox Live Gold account to log into both consoles. This should allow me to play everything I want on my One S and allow her to play all my old games on the 360. The only downsides I see to this are that 1) we cannot both be logged in at
the same time, and 2) she essentially has access to my account. Not that I don't trust her, but still.

2) Create an Xbox Live account for my daughter, so that both she and I have one. This would allow her to log into the 360 with her own account completely separate from mine so that we could both be on at the same time. The big downside to this obviously
is that she will have none of my old games and she would have to rebuy everything. Correct? Or if I bought her her own account, would I be able to share games with her from my own Xbox Live Gold account?

:)

 

Beginner/Nub questions about Xbox Live...

1. What happens to a Gamertag that allows its Xbox Live subscription to run out, more specifically with regards to the name's availability to other users? (Like, is there a "grace period" where no one can use the name, to give the person time to get back on Xbox Live with that account?)
   
2. Is there some kind of rebate for a second Xbox Live account belonging to the same person / credit card?
   
3. If going that route (2 Xbox Live accounts on the same console), will there be anything associating the two in the eyes of the public?

Thanks.

 

How to password protect your Xbox LIVE profile

Xbox LIVE password overview

It is possible to download your Xbox LIVE profile to several different consoles. You may need to do this if you have more than one Xbox 360 console, or you want to play games at a friend's house. In such a situation, you may want to password protect your Xbox LIVE account so that no one else can sign in using your profile.

Set the console to remember your password

Once you have downloaded your Xbox LIVE profile to a console, you will be asked if you want the console to remember your password. The Remember Password option is usually off by default. This means that you will be asked for your Microsoft account password every time you sign into Xbox LIVE.

If you don't want to be asked for your Microsoft account password every time you sign into Xbox LIVE, select the Remember Password option.

Change the password protection on your profile

You are required to set the Remember Password option after you download your Xbox LIVE profile. However, you can change the password protection on your Xbox LIVE profile any time.

If you don't need a password to sign in:

Sign into your Xbox LIVE profile. After you have entered your Microsoft account password, select the Remember Password option.

If you choose the Remember Password option, you will not be asked for your Microsoft account password the next time you sign into your Xbox LIVE profile.

If you need a password to sign in:

You can restrict access to your Xbox LIVE profile on any console using your Microsoft account password.

Steps to follow

1) Sign in using your Xbox LIVE gamertag.

2) Under Settings, select Account and then Account Security

3) Choose the option for Password at Sign In.

4) Select Require Password Here

You will be asked for your Microsoft account password the next time you sign into your Xbox LIVE profile.

How to password protect your Xbox LIVE profile remotely

If you downloaded your Xbox LIVE profile to another console and it is not password protected, or someone has compromised your password, you can change the password from a remote location so that no one else can access your profile.

Change your Microsoft account

1) Sign into accounts.live.com using your Microsoft account.

2) Go to Account Information and, next to Password, click Change.

You can also use your console to change your Microsoft account password.

Note: If the Xbox LIVE profile you downloaded does not require a password to sign in (You selected the Remember Password option), you will not be able to restrict someone from signing into your Xbox profile even if you change your Microsoft account password.

You can remove your Microsoft account password so that other people cannot access your Xbox profile on other consoles. This will ensure that a password is required before signing into your Xbox profile.

Remotely set a profile password from a computer:

1) Sign into your Xbox LIVE account.

2) Under Settings, select Account, and then Account Security

3) Choose the option for Password at Sign In.

4) Select On All Other Consoles.

Once you have done this, a password will be required to sign into your Xbox LIVE profile on all other consoles.

 

You actually can be signed into both consoles at the same time, but I'm not sure if that continues if you're playing on both at the same time.

The best thing to do would be to create an account for her so she can have her own progress in the future and if she decides to use the One later on, she'll already have it. As long as she's using the same console as your account, she can share the games.
(If you do have to get a new 360 or it's not working, you'd need to perform a license transfer http://xbox.com/drm(