A Look at Recent Past Papers for the CII J02 Exam
In this article we are taking a look at the questions asked in four past exam papers of the CII’s Diploma in Financial Planning J02 exam – this is the unit that tests trusts.
This article is correct as at 16 December 2022.
The table below shows the topics that were tested in September 2022, September 2021, April 2021, and February 2021.
| Three certainties of a trust | Six features of a contract that do not appear in a trust | Three main parties to a trust/powers of the appointer | Legal definition of a trust/three ways trustees may be appointed |
| Three methods to appoint trustees and circumstances when a trustee can be replaced under the trustee act 1925 | How a trust can continue without a trustee/pros and cons of appointing a corporate trustee | Pros and cons of using a bare trust compared to a discretionary trust | Action a trustee in bankruptcy can take on a policy held under a MWPA if settlor is bankrupt |
| Joint tenants vs tenants in common | Implied trusts/five other methods of creating a trust | Trust deeds | Knight vs Knight (the three certainties) |
| Accumulation and Maintenance trust main features | Perpetuity and accumulation periods | Types of trust that are not treated as relevant property | Non-tax features of an 18 to 25 trust |
| Investment powers of trustees under the Trustee Act 2000 | Variation of trusts Act 1958 | Delegation of trustee powers | Joint tenants vs tenants in common |
| Electing to be treated as UK domiciled and the IHT advantages | Duties of an attorney under a property and financial affairs LPA | Main function of the OPG | Interest in possession trusts/AIM company investment and the Trustee Act 2000 |
| General powers of attorney vs lasting powers of attorney | Factors the trustees of a life interest trust should consider following death of a life tenant | Wills for unmarried couples | Enduring powers of attorney |
| Mental Capacity Act 2005 and the main functions of the OPG | Impact of divorce on a Will | Effects of bankruptcy on a trust | Court of protection considerations when appointing a deputy/Mental Capacity Act 2005 code of practice |
| Bankruptcy restrictions and rules that apply to assets | Deed of variation and disclaimers | Vulnerable beneficiary trusts | Wills and unmarried couples/disclaimers |
| Duties of an executor of a Will | Debt relief orders | CGT on an estate in administration | Executor’s duties |
| Calculation of a periodic charge and exit charge on a discretionary trust | Settlor-interested trusts | Tax treatment of an offshore trust with a UK domiciled settlor and non-UK resident trustees | Pros and cons of non-statutory trusts compared to statutory trusts |
| Personal pension nominations/IHT implications of transferring a pension into a discretionary trust | How income is taxed in an interest in possession trust | DC pension schemes under trust | Income tax on a discretionary trust |
| Calculation of income tax in a discretionary trust | Benefits of using a discretionary trust compared to a bare trust | Relevant life policies | IHT on a relevant property trust |
| Back to back arrangements | Transferable NRBs and an IHT calculation | Pros and cons of using a whole of life policy written under trust for IHT planning compared to making an outright gift | DGTs vs flexible reversionary trusts |
| Examples of where a dispute can arise between beneficiaries and trustees / action that can be taken | Impact of not having an LPA or EPA in place | Circumstances that would prompt trustees to review a trust | Factors to consider following changes to the taxation of investments held within a trust |
Reviewing past papers is a must in any #CII #J02 revision plan. Share on X
As you can see, there are some common themes running through each paper – namely tax calculations, powers of attorney, and some trust law – with some questions being repeated over these sessions. It does show how important it is to use past exam guides as well as revise the whole syllabus. The J02 manual may be dry in places, but it is one of the more manageably-sized texts.
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