For 3 generations, the Shipman family has sent its children to Yale University, preparing them for successful professional careers. The Wilma Shipman Trust was established in the 1950s by Amy's late grandmother and has accumulated a sizable corpus. It makes distributions to Wilma's descendants rarely, and then only when they need large capital amounts. For example, 2 years ago, the trust distributed $500,000 to Jonathan Shipman to aid him in starting a practice in retirement and elder law. In most years, the trust's income is donated to a single charity.

Under the terms of the trust, Leonard Shipman, Amy's uncle and legal guardian, can specify the trust beneficiaries and the amounts to be distributed to them. He also can replace the trustee and designate the charity that will receive the year's contribution. Accordingly, the trust falls under the grantor trust rules of 678, and Leonard reports the trust's transactions on his own Form 1040.

Amy wants to attend the prestigious local Preparatory High School, which will require a four-year expenditure for tuition and fees of $80,000, payable in advance. She approaches the Wilma Shipman trustee and requests a current-year distribution of this amount, payable directly to the Academy. Under the laws of the state, the parent or guardian has the responsibility to provide a child with a public school education (no tuition charge) until age 16.

If the payment to the Academy is made, how is it treated under the Subchapter J rules: as a charitable contribution to the Academy, as a corpus distribution to Amy, or in some other manner?