How should we close Coverdell accounts with minimal penalties?

I have 2 kids that I had coverdell accounts for. We never used them for school expenses because we thought they could be used to pay off loans which I now know we can’t. Both of my kids are now over 30 and I just found out these funds should have been disbursed before their 30th birthdays. how should we proceed to closing these accounts with the least penalties?