STEP Diploma study guide
STEP Diploma · Work through your exam, one topic at a time.
The STEP Diploma in Trusts and Estates is a professional qualification for practitioners who administer trusts and estates and advise on private client matters - typically trust and estate practitioners, private client lawyers, accountants and fiduciary staff working in-house or in private practice. Its syllabus is broad by design: trust creation, types and administration; wills, intestacy and probate administration; the taxation of trusts and estates; the legal, regulatory and ethical framework; trust and estate accounting; planning and advisory practice; cross-border considerations; and investment and asset management. The STEP Diploma study guide has 8 sections and about 2,669 words.
01Trusts: creation, types and administration
The Trusts domain examines how an express trust is created and constituted, how trusts are classified, and the statutory and fiduciary rules that govern administration. Questions often combine validity with trustee powers, so a technically valid trust can still fail on administration.
382 words, about 2 min02Estates: wills, intestacy and probate administration
Estates tests the validity and effect of wills, the statutory intestacy scheme, and the administration of estates from grant to distribution. It rewards precise sequencing: death, grant, collection, payment of debts and tax, then distribution.
367 words, about 2 min03Taxation of trusts and estates
Taxation tests the interaction of inheritance tax (IHT), capital gains tax (CGT) and income tax across lifetime trusts, death estates and administrations. Questions usually require a calculation and an explanation of who bears the tax.
341 words, about 2 min04Legal and regulatory framework, ethics and professional conduct
The legal and regulatory domain tests the professional and statutory framework around advice: fiduciary duties, the STEP Code of Professional Conduct, anti-money-laundering, confidentiality, conflicts, capacity and data protection. Answers should identify the duty, the source and the practical step.
343 words, about 2 min05Trust and estate accounting and financial reporting
Accounting and financial reporting tests whether you can keep trust and estate accounts that distinguish income from capital, prepare a distribution account and report to beneficiaries and tax authorities. The exam often uses a life tenant and remainderman to test apportionment.
305 words, about 2 min06Trust and estate planning and advisory practice
Planning and advisory practice tests the process of turning client objectives into a workable will, trust and tax plan. It rewards structured fact-finding, capacity checks, risk analysis and monitoring, not a list of products.
301 words, about 2 min07International and cross-border considerations
International and cross-border issues test the conflict of laws: which court has jurisdiction, which law governs the trust or succession, and how foreign assets and beneficiaries are treated. Expect questions on domicile, situs, treaty relief and automatic exchange.
312 words, about 2 min08Investment and asset management for trusts and estates
Investment and asset management tests the trustee's investment power, the standard investment criteria, and the balance between income and capital. The exam often asks whether a proposed investment is permitted and whether the trustee has taken advice.
318 words, about 2 min