Apparently there is no way to hand over my old ipad to my dad, as I cant create a new itunes account without giving payment info. sucks.

really? when my dad died they gave me his old ipod, i was able to make a new account. you have to use the itunes program not the ipad its self

for some reason there is a weird bug in the sign up info

I was able to give my itouch to a friend, you should be able to maybe need go to the apple store