A method of transferring gifts to children that avoids gift tax and safeguards the assets from childish waste. A qualified trust to benefit a minor must be irrevocable and income or principal may be distributed from the trust assets to a child under 21. The assets left in the trust when the child is 21 become the property of the child, and if the child dies before turning 21, the trust assets remain in the child’s estate rather than going back to the originator of the trust. A key part of setting up a trust for the benefit of a child is establishing the child’s present interest in the gift if the child’s use of the trust assets is limited. The qualified trust to benefit a minor accomplishes this.