Legacy Planning Guide
Legacy Planning for Dentists and Dental Practice Owners
We know this isn't the most comfortable topic to sit down with. But if you've taken the time to open this page, you're already ahead of most people. A dental practice is often the most valuable asset a dentist owns — worth $500K to $2M or more. Without a succession plan, that value can collapse overnight. Here's what every dentist needs in place.
Why Dentists face unique challenges
Every profession has its own blind spots when it comes to legacy planning. Here are the ones that come up most often for dentists — and the ones that tend to catch people off guard.
Dental practice valuation including patient base, equipment, and goodwill
Licensing and DEA registration cannot be inherited — a successor must be licensed
Equipment loans and leases often have acceleration clauses on owner death
Insurance credentialing timelines that delay successor billing
Managing hygienist and staff continuity during ownership transition
Documents every dentist should have
You don't need to have everything perfect from day one — but having these documents in place means your family won't be left guessing when it matters most.
- 1
Practice buy-sell agreement with a predetermined valuation formula
- 2
Equipment inventory with loan payoff amounts and lease terms
- 3
Patient notification protocol for practice transition or closure
- 4
Partnership or associate agreement if a successor is already in the practice
- 5
Letter of wishes explaining the culture and values you've built in your practice
Mistakes that cost families the most
These aren't meant to scare you — they're meant to protect you. Each one is a real scenario we've seen play out, and each one is completely avoidable.
No buy-sell agreement — the practice loses 40-60% of value in an unplanned transition
Equipment leases with personal guarantees not disclosed to heirs
No staff retention plan — key hygienists leave and take patients with them
Relying on a handshake with an associate who has no legal obligation to buy
Underestimating how long it takes to get a new owner credentialed with insurers
Your first 3 steps as a dentist
Don't know where to start? These are the three most impactful moves for dentists who are just beginning to think about legacy planning.
Get a professional practice valuation from a dental practice broker or CPA
Review or create a funded buy-sell agreement with your practice partners
Create a patient records retention and notification plan
Frequently asked questions for dentists
What is my dental practice worth for estate planning purposes?
A dental practice typically sells for 60–80% of one year's collections. Your estate plan should include a recent professional valuation and a buy-sell agreement that locks in this value for your partners or heirs.
Can a non-dentist own my practice after I die?
In most states, no — dental practices must be owned by a licensed dentist. However, a dental service organization (DSO) or another dentist can acquire the practice through a pre-agreed buy-sell arrangement.
What happens to my patient records?
Patient records must be retained for 7–10 years (varies by state) and patients notified of the practice closure or transfer. Your succession plan should designate a records custodian and specify the notification process.
How should I structure my practice buy-sell agreement?
A cross-purchase agreement with a co-owner, or a redemption agreement funded by life insurance, are the most common structures. The critical factor is having the agreement funded — unfunded agreements often fail when needed most.
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Where to start on My Loved Ones
Our AI-guided tools walk you through each document step by step — no legal jargon, no blank pages staring back at you. Here's what we recommend for dentists:
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Important disclaimer
This content is for general informational purposes only and does not constitute legal, tax, or financial advice. It was created with the assistance of AI and may contain inaccuracies. Laws and regulations change frequently — always consult a qualified attorney or financial advisor before making estate planning decisions.