Though often used synonomously, the terms "estate planning" and "succession planning" differ slightly. Estate planning often refers to planning for estate taxes, but can also mean planning for the distribution of your estate, that is, who gets what.
Succession planning means planning specifically for the succession of a family business to future generations. Succession planning may involve estate taxes, but they are secondary to the purpose of the planning, which is to allow a successful family business to be passed on intact to future generations. This can be very tricky because issues such as outstanding loans, employee relations and everything involved in running a business is involved in succession planning.
An estate plan might include a succession plan, or it might provide for the sale of the business.
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