Lending Accounts to family Violates TOS?

Rather than giving them your password (which you should never do even if it's a friend/family) you could let them sign into their account on your home console, therefore giving access to xbox live and any games or subscriptions that you have in your library
as well. Giving them access to your account means they can make purchases with your payment information, violate the tos using your account and get you banned, and cause issues for you when you try to sign in.

Your account is personal, and if your relative makes purchases with your card that you do not approve, acts with aggressive personality causing your account to be punished, is a headache to you.

Yeah, I agree with the previous comments. It technically does violate the Terms of Service.

You have to keep in mind that whatever happens on your account, you are ultimately responsible.

My roommate was playing when I got suspended. Can it be lifted?

Xbox Live is a social platform, and we love hearing about players sharing their experience with friends and family. Xbox Live is at its best when everyone joins in the fun!

However, as the owner of the account you are ultimately responsible for how the account is used, both good and bad. When we issue a suspension, it’s not necessarily because you committed a violation, but because
the account was used to commit a violation. Even if you weren’t home or holding the controller when the activity occurred, if a particular Gamertag was used to harass other players or cheated in a game we have to hold it accountable.

If you wish to restrict usage of your account you can set up a passkey on Xbox
360 or Xbox One. And thanks to the benefits of Home
Gold, it’s easier than ever for every member of the household to create their own Xbox Live account!

https://enforcement.xbox.com/en-CA/home/howto#sub-topic0-5

If you look under section V. Fraud benefits no one and click on the drop down there that says for example don't at the following link you will see the top bullet point says

Give someone else access to your account information.

The link is a link to the MS services agreement that you agreed to when you signed up for the MS account.

So to answer your question Yes it does violate the terms of service.

Here is the link

MS TOS

HI Trueno,

As the question has been answered, I will go ahead and lock this thread as to prevent repetitive answers. Feel free to come back anytime if you have a question or issue.

Thanks,

Brad