### Question
How is the term qualified trust defined?


### Answer
The term **qualified trust** is defined in *26 U.S.C. § 529* as the following:

> a trust which is created or organized in the United States for the exclusive benefit of designated beneficiaries and with respect to which the requirements of paragraphs (2) and (5) of section 408(a) are met

#### Citation:
  - *26 U.S.C. § 529*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART VIII-HIGHER EDUCATION SAVINGS ENTITIES**

