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I will add a couple of thoughts.
If you want your duaghter to have access to your account (which means she would buy books on your account with your payment information), then do nothing.
If your daughter will have her own account, you can go to settings and under account simply sign out. This will remove all your kobo account details and Kobo books. But, it will leave your setting in tact and leave your epubs in place. Alternately, you can go for the "nuclear" option and do a factory reset in settings under device information. This will wipe everything including any firmware upgrades applied so, she will need to set it up and apply the firmware updates.
Hope that helps.
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