Why Dentists Need a Buy-Sell Agreement
If you’re a dentist in a partnership or group practice, having a clear buy-sell agreement isn’t just a good idea—it’s essential. A properly funded buy-sell agreement ensures your practice remains stable and your family, partners, and patients are protected in case of unexpected events like death, disability, or critical illness.
As a financial advisor who specializes in working with dentists, I help you put the right structure and funding in place so your dental practice can continue to thrive—even if life throws a curveball.
What is a Buy-Sell Agreement for Dentists?
A buy-sell agreement is a legally binding contract between dental practice owners. It outlines what happens if a partner dies, becomes disabled, retires, or chooses to exit the practice.
When dentists don’t have a buy-sell agreement in place, it can lead to:
- Disagreements with surviving family members
- Loss of patients due to uncertainty
- A forced or rushed sale of the practice
- Financial strain on remaining partners
Funding a Dental Buy-Sell Agreement
It’s not enough to have the agreement in writing—you need the money ready when it’s needed. That’s where insurance comes in. It’s the most efficient and cost-effective way to fund a buy-sell agreement for dentists.
Life Insurance
Provides a tax-free payout so surviving partners can buy out the deceased dentist’s share of the practice.
Disability Insurance
If a dentist becomes disabled, this policy provides funds to purchase their share, keeping the business running.
Critical Illness Insurance
Offers a lump sum in case of serious illness, allowing partners to buy out or restructure without financial stress.
Who Should Help Set Up Your Dental Buy-Sell Plan?
Setting up a buy-sell agreement for dentists involves a team of professionals:
- Financial Advisor –Provides funding strategies using life, disability, and critical illness insurance.
- Accountant – Assesses practice value and tax impact
- Lawyer – Drafts the legal agreement and aligns it with your business structure
As your advisor, we can help coordinate the entire process so everything works together.
Why Dentists Trust Us for Buy-Sell Planning
We specialize in helping dentists across Canada protect their practices through customized buy-sell strategies. Whether you’re starting a new practice, bringing in a partner, or reviewing your current agreement, we’ll guide you every step of the way.
