Do I need to unlock my old iPhone before I get a new one?

My contract with AT&T was up in June and I'm planning to re-sign when I buy iPhone 5. I currently have iPhone 4, which I was planning to give to my niece who currently has one of those pay-as-you-go phones. (She will not be using it with any major carriers.)
My question is do I need to unlock my current iPhone 4 from AT&T before I buy iPhone 5? Or how would it work?

It depends on which network your daughter is on.  If it's Orange UK, then no the iPhone 4 will not need unlocking, but if any other network, including 4GEE or T-Mobile, then yes you will first need to get it unlocked.
That can be done by filling in this online form.

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