The CII J02 February 2026 Exam in Review

Here, we take a look at the exam paper for J02, the exam that sits in the Diploma in Financial Planning and covers trusts – useful for those preparing to sit the next J02 exam.

This article is correct as at 7 May 2026. 

You can find the exam guide here.*

Two hours are allowed for the J02 paper which is made up of 15 short-answer questions and carries a total of 130 marks.

Question 1

The exam started with a question asking how a trust differs from a contract. This was for seven marks and has been tested many times in the past and so should have been a nice start to the exam.

Question 2

The second question should also have been well received; it asked for a description of six main duties of the trustees of a UK trust. This is a nice standard trust question and candidates should have scored well.

Question 3

Next, candidates had a mini case study; a couple were considering gifting £350,000 into a bare trust for their young grandchildren. Candidates had to state six benefits and six drawbacks of making a gift into a bare trust compared to a discretionary trust. On the surface, this is another standard trust question, but it did mean candidates having to use their knowledge of the trusts to then make a good comparison between the two.

Question 4

Candidates then had to describe a fully secret trust. This was only for three marks. But part (b) of the same question asked for further knowledge of the conditions which must be satisfied before a court can declare a fully secret trust. These have been tested before but won’t be used on a daily basis, so candidates would have had to dig deep for the required knowledge to gain the full five marks available.

Question 5

This question appeared to be testing the special tax treatment of a vulnerable person’s trust but further reading uncovered that initially it was the State benefits that a person with a disability would qualify for. Part (b) was more around the tax treatment with candidates having to explain how the trustees claim the special treatment. This was quite a tough question which may have left some candidates wishing they had studied that section a little closer.

Question 6

Next came a factors question; candidates had to state the factors the trustees of a discretionary trust should consider when selecting an appropriate investment for the trust. This was for eight marks and most should have been easily achieved.

Question 7

This question was for five marks in total and tested how excluded property trusts created prior to April 2025 would be treated for IHT if the settlor is now classed as a long term resident. This was a tough question but for five marks would not have been the end of the world if candidates didn’t know all the details around this quite technical area.

Question 8

In this question, we were introduced to Habib who was planning a six-month secondment. The question was testing general powers of attorney and for three marks, candidates had to explain the benefits and for another three marks state the circumstances in which a general power of attorney stops being effective. Powers of attorney are usually tested and with this being only one of the three that can be tested, should have caused little difficult for the prepared candidates.

Question 9

Candidates then had to explain who can be appointed as a deputy for someone with no enduring or lasting power of attorney. This was for six marks. For another six marks, candidates had to state three financial decisions a deputy is unable to make on behalf of someone mentally incapable.

This is another quite technical part of the syllabus and for a total of 12 marks may have proved challenging for some.

Question 10

In Question 10, we met Gunther and Martha – an unmarried couple with two young children. The question tested the laws of intestacy if Gunther were to die. This was for six marks and part (b) offered another six marks for stating the requirements to make a valid Will. These are very standard questions within the J02 exam and should not have caused too many problems.

Question 11

This question firstly required candidates to describe the tax treatment of income received by the trustees of an interest in possession trust (for five marks) and for another six marks the tax treatment of the income distributed to beneficiaries. The taxation of trusts should feature prominently in a student’s study plan and so should have been answered well.

Question 12

This question also covered taxation; firstly candidates had to calculate the Income Tax liability on income received during a period of administration (for five marks ) and also how any capital gains made on during the period of administration will be taxed (for seven marks). Again, another quite technical area of the syllabus where candidates may not have had too much practical experience.

Question 13

This question asked candidates to list six of the documents trustees will need to provide as proof of title when making a claim on a whole of life policy held in trust. This was for six marks which should have been easily achievable.

Question 14

This question asked how a back-to-back arrangement operates. This was for quite a hefty 10 marks and may have proved challenging. Past paper analysis will have shown that IHT schemes are often tested so future candidates should take note of this one as well as the more standard DGT and loan trust questions.

Question 15

The final question asked for the main reasons which might prompt the review of a trust. This was for eight marks and should have been answered well.

Overall, this paper felt more difficult than previous papers, with some quite technical areas being tested.  It was, however, interspersed with some standard J02 knowledge as well.

The paper serves as a good reminder for future students to ensure that they keep up to date with changes in legislation, they have a well-structured study timetable in place which covers all the learning outcomes.

There’s a lot to learn with J02 and to achieve a pass, the studying and hard work has to be fully committed to in the months leading up to the exam.

Comparison with the September 2025 Exam Paper

If we look at what was tested in September 2025’s paper, we can see if there has been any overlap. This exam guide can be found here.*

The topics covered were:

• how a trust is created in a Will when assets are left to a minor
• how a trustee can be initially appointed and the powers of an appointor
• tax benefits of an immediate post death interest trust compared to a discretionary will trust
• requirements for a valid trust according to the Knight v Knight (1840) ruling
• express trusts and who registers a non-taxable express trust with the TRS
• how a trust may be varied under section 57 of the Trustee Act 1925
• a description of the main duties of an attorney appointed under an LPA
• conditions for a disclaimer to be effective for IHT and comparison with a deed of variation
• challenging Wills under the Inheritance (Provision for Family and Dependants) Act 1975
• effect of bankruptcy on policies
• exit charge calculation and who pays it
• trusts and defined benefit pension schemes
• benefits and drawbacks of using a discounted gift trust
• Saunders v Vautier

Grab the resources you need!

If you’re studying for your CII J02 exam, and you want to be thoroughly prepared, 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!

* The CII has updated their retention policy and now only provides the last two exam papers. Older papers referenced in this article may no longer be available on the CII website.