The CII J02 exam is all about the detail – April 2017 Exam Review

Next in line for our past paper analysis is J02, the exam which covers trusts – useful for those preparing to sit CII J02.

You can find the latest exam – April 2017 – by using this link:

http://www.cii.co.uk/media/7495475/j02_april_2017_qp.pdf

Two hours are given to answer 15 short-answer questions for a total of 130 marks, and as we have said many times before, the one thing you can be sure of is that there will be a question on bankruptcy, powers of attorney, trust reviews, trust taxation and wills. Students must ensure that they have a full and proper grasp of these areas, with the rest of the paper made up of the various trust technicalities.

A Nice Start

The April exam began rather nicely with students having to state the legal parties to an existing trust and part (b) of the same question asking for four ways a trust differs from a contract.  Not a bad start at all.  Second up was the expected question on bankruptcy, where the well prepared candidate should have picked up the 10 marks available.  Charitable trusts were tested next, and again this has come up time and time again.

At a Student’s Fingertips

The power of attorney question in this paper focused on Enduring Powers with eight marks available for the detail surrounding these. As we’ve said already, powers of attorney are always tested, and with only three to choose from, the knowledge of each should be at a student’s fingertips.

A Comfortable Question for Most

Question 5 required students to state the duties of an executor, and we feel this should have been a comfortable question for most.

Straightforward Questions

The exam continued with four reasons why you would recommend a whole of life policy under trust for IHT planning, and it continued with the essential requirements to set up a trust – both of which seemed straightforward questions.

A Bit More Challenging

The next question may have been a bit more challenging, as it surrounded IHT and business protection as well as POAT. If it did cause problems for some, the good news was that it only accounted for six marks.

The Big-Mark Questions

Other bigger marks were available for detailing the statutory duty of care for trustees and the taxation treatment of a discretionary trust.  Taxation is another area that must always be expected, so students should be sure that they understand the differences between the ways each of the main trusts are taxed.

Question 10 concerned a complaint regarding a trustee. 10 marks were available for stating the areas of review for the existing trustees and also how a trustee could be removed following the investigation of the complaint.

Question 11 also gave 10 marks – this time for outlining the powers of the court of protection and duties of the OPG.  Both these have been tested many times before, so a student should have been ready for this.

A Different Note to Finish On

The exam finished with a question on the alternatives to bankruptcy, spousal bypass trusts, deeds of variation and finally Question 15 which asked for 8 factors that might indicate why a DGT would be suitable for a widow.  Compared with previous exams, this was a different note to end on.

A Comparison with October’s Exam Paper

Let’s compare it with October’s paper in 2016, which can be found by following this link:

http://www.cii.co.uk/media/7162698/j02_october_2016_qp.pdf

The expected questions on bankruptcy, wills and powers of attorney (this time an LPA) were all there, but the exam actually kicked off with a chunky 10-mark question on the duties of trustees in holding and dealing with the assets of a trust.  Other areas included resulting trusts, excluded property, the effects of divorce on a will as well as trusts for vulnerable beneficiaries.

This paper would not have helped with the questions in April’s exam, so it’s always a good idea to go back a few exam sittings and look through as many of them as you can.  This helps with style of question, any recurring themes and the examiner’s comments can be invaluable in giving a steer as to what might come up in the future.

Using mind maps may help

The J02 exam is all about the detail behind each question, and although the manual is well written and manageable, it is still a challenge remembering lists of information.  Using mind maps may help when trying to learn what can often be quite dry material.

Grab the resources you need!

If you’re studying for your CII J02 exam, and you’re wanting the psychological edge of having prepared thoroughly, grab our free taster to try out one of Brand Financial Training’s resources for yourself.  Click the link to download the J02 mock paper taster now!

Over to You…

If you’re planning on sitting J02 in the near future, do you use mind maps in your revision?