Wills, POAs & Practice Value: What Every Dentist Should Know Before It's Too Late.

Most dentists spend decades building a successful practice — investing time, capital, and care into something that becomes both a livelihood and a legacy. But what many overlook is this: without proper legal planning in place, that legacy can become vulnerable overnight.

At Meridian Sales & Appraisals, we regularly work with dentists preparing for retirement, transitioning ownership, or conducting formal appraisals. One issue that often surfaces — especially during unexpected life events — is the absence of up-to-date Wills or Powers of Attorney (POAs).

While we don’t provide legal services ourselves, we’ve seen how proper estate planning can protect a practice’s value — and how the lack of it can threaten even the most successful dental business.

Why Wills and POAs Matter to Practice Value

You may think Wills and POAs are just personal legal documents. But if you're a practice owner — especially one who operates through a Dentistry Professional Corporation (DPC) — these documents can directly impact the future of your practice and the ease with which it can be sold, transferred, or maintained in the event of death or incapacity.

Here’s why they matter from a valuation and transition standpoint:

Wills: Ensuring Your Practice Transition Happens Smoothly

If you own shares in a DPC, those shares are part of your estate. Without a Will — or the right structure in place — your estate could:

• Face delays in probate, during which time the practice may not be able to operate or be sold.
• Be subject to higher estate administration taxes, reducing what your beneficiaries ultimately receive.
• Leave executors unclear on how to handle the business, especially if they’re unfamiliar with its operations.

Many Ontario dentists use dual Wills — separating personal and corporate assets — to protect their business and reduce probate costs. If a practice is appraised at $1–3 million or more, the savings from this structure can be substantial.

Powers of Attorney: Keeping the Business Running if You're Incapacitated

In the event you become unable to manage your affairs due to illness or accident, a Power of Attorney for Property is what allows a trusted person to:

• Handle business operations
• Authorize payments, payroll, and ongoing expenses
• Engage professionals to assist with the sale or management of the practice

Without this document, your practice could be stalled at the exact moment you or your family needs it to remain financially stable or be prepared for sale.

A Power of Attorney for Personal Care, while less related to the business itself, ensures your healthcare decisions align with your values — helping prevent family stress that could otherwise affect how your affairs are handled.

What Happens When These Documents Are Missing?

From a sales and appraisal perspective, here’s what we often see when legal planning is overlooked:

• Delayed sales: Without clear authority to act on behalf of the owner or estate, a practice cannot be sold in a timely manner.
• Lost value: If the practice sits inactive for weeks or months, goodwill starts to erode — impacting patient retention, staff stability, and ultimately, price.
• Unnecessary legal costs: Resolving issues through courts or emergency filings can be both expensive and time-consuming.
• Buyer hesitation: Unclear legal ownership, or the absence of a person authorized to represent the seller, can scare off qualified buyers.

Protect the Value You've Spent Years Building

If you’re planning to retire, sell your practice, or just want to ensure your business is protected, now is the time to ask:

• Do I have an up-to-date Will — including a Secondary Will for my DPC shares?
• Have I named a Power of Attorney who understands my business and can act quickly if needed?
• Will my executor or family know what to do with my practice if something happens?

These aren’t just legal questions — they’re also valuation questions. And they matter deeply when preparing your practice for a transition or sale.

Meridian's Role in Supporting Your Planning

While we don’t draft legal documents, Meridian Sales & Appraisals plays a critical role in helping dentists understand how legal, operational, and financial planning all connect — especially when preparing for sale or assessing market value.

We work closely with your lawyer, accountant, or estate planner to:

• Provide formal, independent valuations of your practice
• Help you understand how ownership structures affect tax outcomes and sale readiness
• Ensure your practice is positioned to transfer smoothly, whether due to sale or unforeseen life events

Next Steps

If you haven’t recently reviewed your Wills or POAs — or if you’re unsure how they affect your practice — now is the time to act.

Contact Meridian Sales & Appraisals for a confidential appraisal or transition readiness review. Together with your legal and financial advisors, we’ll help you safeguard your practice’s value and ensure a smooth path forward — no matter what the future holds.

Alan Rustom