Upgrading.. what to do with old phone?

I am upgrading to the iPhone 5 and this is my first ever upgrade. I currently have a 3GS. Once I transfer my apps/pics etc to the new phone do I restore the old phone to its orig settings? I may give it to someone I know to use so obviously I don't want any trace of what I had on it there anymore. Thanks !

You restore it by going to Settngs > General > Reset > Erase All Content and Settings

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