n NISM Certifications
X NISM Series X
Medium

Regarding succession and estate planning, which statement is accurate?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Estate planning takes effect during lifetime; succession after death

  2. B

    Both take effect during lifetime

  3. C

    Both take effect after death

  4. Estate planning takes effect after death; succession during lifetime

    Correct answer

Why this is the answer

Estate planning deals with distributing assets after death, while succession planning involves transferring business interests during one's lifetime.

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