n NISM Certifications
X NISM Series X
Medium

Which statement is TRUE regarding estate and succession planning?

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

    Both take effect during one’s lifetime

  2. B

    Both take effect after death

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

    Correct answer

  4. D

    Estate planning during lifetime; succession planning after death

Why this is the answer

Estate planning involves arrangements to handle assets after death, whereas succession planning focuses on leadership or ownership transfer during one's life.

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