Are there any restrictions to who can be the beneficiary?
A College Sense 529 account has the advantage of having "flexible beneficiary designations". This means that the 529 account balance can be transferred to a new beneficiary at any time as long as the beneficiary is a family member of the original beneficiary. A Family member is defined as being other siblings in the family, cousins,nieces or nephews.
All transfers to the beneficiaries or to other family members would be tax-free to the recipients.
If your relative meets the above designation, then clearly there would be no tax consequences for the transfer of the "529 Plan Account".