Trusts (J02) starts by looking at the structure of a trust and the roles of the main parties. It includes how trusts are created and the rules covering the investment of trust assets and the administration of trusts.
It explains substituted decision making, including types of Power of Attorney and other options, before considering the use of Wills and the consequences of dying intestate.
The study text moves on to consider the bankruptcy rules, the role of the trustee in bankruptcy and alternatives to bankruptcy. How trusts are subject to tax and how a liability can fall to the settlor, trustees or beneficiaries are also considered.
It then looks at how life, pension and other investments can be placed in trust and the tax implications before considering effective trust and related tax planning solutions.
Building a successful career in personal finance
Trust (J02) is suitable for anyone seeking to build their knowledge and understanding of trusts. This unit counts towards the Diploma in Financial Planning, in particular those who already hold CII credits that count towards completion (otherwise, the Diploma in Regulated Financial Planning is more suitable).
Learning outcomes
At the end of this unit, candidates should be able to demonstrate an understanding of the:
- legal principles associated with the creation and management of a trust
- main types of trusts that are common in the UK
- taxation considerations relevant to trusts
Assessment
- Two hour exam
- Written short answer questions
- The nominal pass mark is 55% (for more information on nominal pass marks please see here)
- The 2023 pass rate for this unit was 63.1%
Units treated as equivalent
Due to the extent of syllabus overlap, certain combinations of current and withdrawn units will result in only one award of credits.
If a withdrawn equivalent is held you may not need to complete a current unit in order to satisfy a qualification's completion rules. Clarification should always be sought from CII Customer Service.
Find out more about credit awards for equivalent units
Course delivery
Instructions on accessing your course on RevisionMate will be sent to your registered email address. This is typically within two working days of your order being placed, but may be longer, particularly if payment is made by bank transfer or the unit is available as a pre-order.
Study material - editions available
Applicable to exam sittings within a 12-month enrolment period.
Important information - Upcoming maintenance: The CII will be undertaking work on our IT systems throughout the entire weekend of 12-14 October, as part of our strategy to better support our members and customers.
The work will mean that during this time there will be no access to the CII/PFS/SMP websites and learners will be unable to take exams, access RevisionMate, or make purchases on these days. We have spoken to all those who have booked to sit an exam on these days to advise them of what action they need to take. We apologise for any inconvenience caused.
