IF YOU WERE TO DIE OR BECOME DISABLED TODAY, WHAT WOULD HAPPEN TO YOUR PRACTICE?
By Mary Fisher-Day
We see it all too often: A Dentist/Practice Owner unexpectedly dies and leaves his/her family and team to work out details for the future of the practice with no direction or plan to which they can refer.
You may ask why there is a problem if you have invested well and have good life insurance. This is a great question, and the answer relates to something most dentists do not consider: In not having an emergency exit strategy, you are throwing away another life insurance policy; the value of the practice. In addition, and most importantly, you place your family and your team in the position of making decisions for which they are not prepared and at the most vulnerable of times while they are mourning your death.
The years of sacrifice you made to attend school and eventually own your own dental practice can be wiped away in a matter of weeks.
You can protect your family, team, practice value and your legacy
The value of a dental practice will fall between 5 and 10 percent per week upon the death or permanent disability of the dentist/practice owner?
When a dentist dies or becomes permanently disabled without an exit plan and an emergency directive it is nearly impossible to protect the value of the practice, in these situations, the practice is often sold off in pieces.
How do you prevent this from happening to your practice? By implementing an Emergency Exit Strategy and an Emergency Directive. Every Dental Practice owner should have both.
You have the power right now to direct the transition of your practice and protect your Legacy.
See below a portion of what an Emergency Directive should contain. It should provide clear Instructions for obtaining and utilizing the following information and more.
- Names and contact information for essential decision maker.
- Location of every essential document needed.
- Contact information for Insurance Representatives and pertinent information about policies
- Contact information for all Team Members.
- All essential Account Numbers and Passwords
- Practice Management Reports
- Personnel Records
- Tax Returns with depreciation schedules, Profit and Loss Reports and balance sheets
- Banking and Credit Card information for business and personal accounts
- Admin Login and passwords for all business and personal accounts (examples: Practice Management Software, Supply Company Account, Email, Social Media Accounts, Amazon, etc.)
*All information and associated documents pertaining to your Emergency Directive should be kept in a secure location with appropriate passwords and locks as needed. Share access to the Emergency Directive and associated documents with only the following people: 1) A trusted financial or legal advisor, 2) A person you trust within your immediate family (spouse, sibling, parent, grown child), 3) A trusted close family member or friend outside of your immediate family (this will be your point person or executor).
Mary developed the Emergency Directive to assist dentists with preserving their life’s work.
To obtain a more detailed checklist for the Emergency Directive go to: www.legacydentalcoach.com
You may purchase the Emergency Directive in a downloadable and fillable form for $297 at: https://thedentalbusiness.com/product/emergency-directive/