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We use to have the Live Family setup. When the converted everyone to individual accounts, I kept mine up to date and let my wife's lapse because of the Sharing feature on the Xbox One. However, my wife is unable to sign in now with her account. It has not been a big deal up until now, but our daughter is getting old enough that we would like to play some games with her, and she would like to be able to do that while I am at work as well. I have the Xbox set up as my home system and am sharing on it. Do we actually have to create her a new account, or should she be able to log in with her old account and use my Gold privileges?

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    As it isn't really your question, I'll tackle this in a comment. To get her account up-to-speed, try logging in on a PC on xbox.com. It is way less hassle to get the account up and running again with proper input peripherals. – Eric Jan 30 '16 at 9:19
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Her old account will work just fine as long as it hasn't been reprimanded by Microsoft.

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