What to do with Xbox account after trading in Xbox?

The only thing you can do is to maybe set your Home Xbox onto another Xbox in the same household for a family member. This is allowed. For instance, if you have a brother with an Xbox, you can set his Xbox as your Home Xbox and then he would have access
to share your account/games. But otherwise, no, the games are only tied to your account and you cannot sell it or them as this violates the Terms of Service and can result in an account ban.

unfortunetely not, id suggest keeping the account, as if you ever get a console again youll still have those games and content to play

You unfortunately can't trade the account or the games.

However, if you get a PC, you can still keep the games that are on the Xbox Game Pass ultimate to keep playing them.

Hi jessegeoghan

Unfortunately, it is not possible, but a feature that I believe many gamers would like to have. Including myself.

I would like to transfer some of my purchases to my kids account

No, there's no way of selling digital games (yet) and I really highly super strongly recommend that you DO NOT trust sites/people that purport to offer this service, they are almost always scams. That said, your account still has value, you can log in
to any xbox and play the games on that Xbox, even if it's just at a friend's house. You can always look at getting a used console for super cheap on facebook marketplace or craigslist. The nice thing as well is that all of the game saves will come across to
the new console.