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Trusts (J02)

Trusts (J02) develops knowledge and understanding of the various types of trusts.

The default Enrolment option for this unit includes:

  • Latest version of the core learning content, in digital format only.
  • Assessment entry.

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).


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.


  • 2 hour exam
  • Written short answer questions
  • The nominal pass mark is 55%
  • The 2021 pass rate for this unit was 58%

Study material - editions available

Applicable to exam sittings within a 12-month enrolment period.