The Professional Executor

Planning for the future of your private practice

What would happen to your practice in the event of your death or disability? Do you have an appropriate professional who can deal with third-party payers and existing contracts? Will tail insurance be obtained in a timely manner? What about providing proper referrals for clients and ethical termination?

Advance Planning now assures legal compliance, avoids potential litigation, and fulfills your ethical responsibilities as a licensed professional. Having a good plan will protect your spouse or loved ones and avoid significant potential expense. It is also smart business. The process of closing or transitioning your practice, resolving contractual or employment issues, and valuing your practice is more efficient and less expensive groundwork is already in place.

Transitioning your Practice

Planning for the transition of your practice involves identifying your goals and then creating the legal and practical tools necessary to achieve your desired outcomes. For example, your goals may include securing assets, maintaining client confidentiality, insulating family members from responsibility for the practice, and treating your practice as your estate.

Legal and practical tools may include:

  • Appointing a Professional Executor to wind up your practice
  • Setting forth written instructions for your Professional Executor
  • Aligning your practice with your estate plan and other assets
  • Safekeeping passwords and computer files
  • Preparing notification letters to clients and other entities

Professional Executor

The Professional Executor is another mental health professional with the same or similar license that you choose to implement your practice transition plan. He or she will be a colleague familiar with your practice and your circumstances. Once the plan is triggered, the Professional Executor will perform tasks such as ensuring proper record retention, providing for ethical termination of clients, and winding down practice operations. While engaging in these activities, the Professional Executor will be informed and guided by your written transition plan.

Conclusion

Significant life events often have an outsize effect on solo or small group practices that simply do not have the organizational structure of larger entities. Therefore, it is imperative to plan for practice transition and not wait until a crisis arrives to address crucial issues. In the wise words of Benjamin Franklin, an ounce of prevention is worth a pound of cure. Appointing a professional executor and creating a practice transition plan will ensure your practice is legally and ethically resolved, eliminate unintended consequences, and avoid harm to your loved ones and your clients.

For more information about planning and our practice, please visit our website or contact our office.
Very truly yours,
Monahan Law Group, LLC

© 2017 Monahan Law Group, LLC. The information provided herein is for informational purposes only and should not be considered legal advice.