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I bought my son a new iPhone at Christmas so I now have his old one but it has his iCloud account on it.

If I delete the account on this phone can I make a new one for me and will his account still be active and ok on his new device?

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Why not set up the new phone first. Once that's done and your son has verified all the games and apps and settings are correct. Erase all content and settings on the old phone (under general in the settings app - go to the bottom where it says reset).

That way, you can set up the "old" phone with only the accounts you care about.

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Before you do anything to the old phone, have him set up his new one and log into his iCloud account on it.

To answer your question, yes. When you remove his iCloud account from his old iPhone, everything will still be on his new phone. When you remove his iCloud account, you are not "deleting" the account itself, just the copies of his content (apps, games, music, movies, books, and so on) stored locally on his old iPhone.

If you have a Mac, I would suggest that you have him log into his account, plug his old iPhone into the Mac and make a backup of it in iTunes, then plug in his new iPhone and restore the backup of his old phone to his new phone.

Most apps these days have accounts or syncs of their own, so you shouldn't have to worry about them. Still, if what I suggested in the last paragraph doesn't work, just have him give his old phone one final sweep to make sure he didn't forget anything important.

Once he has everything he wants off of his old phone, just go to Settings >> General >> Reset >> Erase All Content and Settings, then hit "Erase iPhone" when prompted. Do that, and all of his data will be removed from his old phone and you can do with it what you will, without his new phone being affected at all.

More information on factory resetting an iPhone and also on backing up and restoring can be found here: http://www.digitaltrends.com/mobile/how-to-factory-reset-an-iphone/

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