How to File Receipt of CST when a US resident student

I am a Canadian, with Green Card in Florida. Prior to moving to Florida, when living in Canada, I had set up Canadian Scholarship Trust (CST) programs for my boys. As soon as I moved, I stopped contributing to those, in effect freezing them so I could establish legal US residency without question.

My boys are finally attending school here in the US and I had to claim the scholarships. It wasn't a lot of money, but to make things simple, I took a lump sum payment, a simple return on principal with interest. I accepted the associated withholding penalties, and loss of the Canadian government contribution etc.. So in effect an $8000 scholarship was a $4000 payout. This will allow me to address this one time - the accounting fiasco of an ongoing deal was not worth it in my mind!

So when I file this year in the US, how do I address "receipt" of these monies? Is it income to my son? Shouldn't be - because really, I just drew savings (I passed up the "multipliers"). ON the other hand, IRS has record that this was an $8000 CST - and this year, I will have to file it as a "0."

I appreciate your suggestions.

I answer cross-border tax q's at forums.serbinski.com, not here.