I certainly wouldn't spend any money for transferring miles if you have enough miles in an account for a free ticket.

To answer your question, even though the account maybe in someone else's name, when the miles get redeemed for somebody, you will have to enter in the passenger's first and last names, just as if you were to buy a ticket. So you shouldn't have to worry about it being in the account holders name, you designate who the traveller is.