How can I create a free iCloud account when the device is no longer eligible for creating a free iCloud account?

[iMore Question]

How can I create a free iCloud account when the device is no longer eligible for creating a free iCloud account?

I want to give away my iPod Touch that I purchased from ebay two years ago to my relative. I am getting the above message while attempting to complete the Setup
Assistant to send the device to him.

How do I create a free iCloud account?

 

[kch50428]

Re: This device is no longer eligible for creating a free iCloud account

http://forums.imore.com/icloud/235542-solution-cannot-sign-account-limit-reached.html