Don't give away the new one your wife just bought you. There is no upside anywhere near the value vs. the possible downside.

Okay, for some clarity, I wouldn’t wrap a used tool and give it to my pops. It’s used. No need for wrap.

My wife is Korean. Their culture is different in the sense that if I were to give my pops the new one and keep the old for myself, that would be okay. It’s a respect kind of thing.

Reading what everyone here wrote, it seems pretty simple. Follow my original plan and give pops the old one because I got a new one. Keep the ones my wife gave to me, because while her culture says it’s okay to give away something to a parent, as sigmonkey said, the elephant never forgets.

I have an idea. Give it to your father in law and then tell him that his daughter wants him to use it to build shelves in your closet with it for Christmas. Win Win!!!!!!

Tough question, many factors.

ME, I think keep the old one, give away the new.
But since the new came from the wife, don't do that.
And if your father is like mine, he wouldn't take the new one.

I went through this not too long ago with a Dewalt 20v drill. I wanted to buy my father one as a gift, but I knew he would be very upset with me if I bought him one. I found one on the side of the road (bag, batteries, charger, the whole kit) and was eventually able to talk him into taking that one, quite reluctantly.

I would keep the new one out of respect for the giver, and gift the old one out of love for the recipient.

As far as used tools go, it's nearly impossible for me to work on a project without touching at least one "hand-me-down" tool. I often silently thank the giver, most of whom are long deceased, and their used tools mean more to me than a new one ever could.

The new gift was chosen with forethought and love.
The old one should be passed along as a gift but not for an occasion.

If you or your wife place little-no value on these sort of things, then give the present to your father as a gift from both of you.

To simplify things, afterwards, let her know you already have one and exchange for a tool you don’t or refund to card... happens all the time.