For example, before I bought my own Xbox One, I logged into my roommate's with my Live account and I was able to play any of the games he had installed. To my understanding, if the Xbox that is set as your "Home" console has active Live Gold, any Xbox Live account that signs in on it will have shared access to all the content. If he were to login with his account on a console that isn't your account's Home console, he would only have access to any content/subscriptions that are associated with his account alone. Your nephew can create his own account and use it to play anything that's been installed and is associated with your account on that Home console. Whichever Xbox you're giving to your nephew would need to be the one that is your account's Home Xbox, in order for him to have access to the content on your account (including Live Gold).
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