n NISM Certifications
X NISM Series X
Medium

What is the key difference between Succession planning and Estate planning?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    They are interchangeable terms

  2. Succession relates to business, estate to personal assets

    Correct answer

  3. C

    Estate planning is for business, succession for personal assets

  4. D

    They depend on individual planning methods

Why this is the answer

Succession planning pertains to the transfer of business interests; estate planning manages personal assets.

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