Their account
I'm not Madge or with RCI but think I know your answer. The 1 in 4 rule applies to the account, not the points. Once you have transferred the points they become part of the other persons account and the 1 in 4 rule would apply to THEIR account NOT YOURS. Madge will get around to answering someday, but I'm sure I'm right.
Mike S.
PS If you use your account to book a "Last Call", "Extra Vacation", or a weeks unit through the "45 day exchange" program then the 1 in 4 rule would apply to your account. However if you book in a points resort through the "Standard Program" and use a Guest Certificate there is no problem because 1 in 4 applies only to weeks resorts, not to points resorts.