If you recently got a new iPad and are considering giving your old one to your spouse, loved one, kid, etc., you should consider reseting your old one. As tempting as it may be simply tweak some of your settings and then pass the iPad along, you may inadvertently transfer sensitive information, settings that the new person just may not want or leave behind the way you think the iPad should feel.
By resetting the iPad, you can give the new user a sense of how to work with the device and let them become familiar with how to interact with it.
Before you reset everything, make a back up by syncing it with iTunes as you normally would. Also, make sure you have updated the device with the latest iOS update, currently 5.1. A full charge of the battery is also recommended. Take a few moments and clean the device as well.
The entire process is described on this page and it is a good article to review.
Apple has a support article describing the process of backing up, updating and restoring iOS software.
In short, take the time to make the experience of turning on the iPad for the first time to the new user as pleasurable as possible.
iPad Notebook 
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