Planning for the unexpected: Why practitioners need an estate plan

Estate planning is often seen as something to deal with later in life, but for doctors, the question is different. Why should medical practitioners start earlier than most other professionals? The answer lies in income, personal risk, lifestyle demands and the structures that support a medical career. The article below outlines the key reasons why early planning is essential.

Personal risk exposure

Medical professionals carry a level of personal risk that most people do not. While professional indemnity insurance is essential, it does not replace the need for strong personal legal planning. An estate plan can help protect personal assets from unintended consequences and ensure your financial and personal affairs are handled correctly during illness, incapacity or death.

If you are unclear how your responsibilities and potential exposures intersect with your personal finances, this is an area worth exploring.

Complex insurance arrangements

Doctors commonly hold multiple insurance policies, including income protection, trauma, life and Total and Permanent Disability (TPD) cover. These policies can involve significant benefits, and without a plan, the funds may not go where you intend.

An estate plan helps ensure insurance payouts are directed appropriately and do not create disputes or delays for loved ones.

Planning for illness or loss of capacity

Estate planning is not only about what happens after death. It also involves preparing for situations where you are unable to manage your own affairs. Powers of attorney and related documents ensure that your financial, medical and personal decisions can still be made by someone you trust.

Without these documents, decisions may be delayed or made by people you would not have wanted.

Protecting those who rely on you

Many doctors support partners, children, extended family or others financially. An estate plan can provide structure around how those dependants are cared for if you are no longer able to provide for them. This includes planning for school fees, living expenses, tax consequences and long-term financial security.

Clear planning helps avoid emotional and financial strain during challenging times.

Final thoughts and next steps

Medical practitioners face a combination of higher income, personal risk and unpredictable work demands. This makes early estate planning not only sensible but essential to ensure your wishes are followed. We have seen firsthand the unfortunate situation where substantial funds have been spent on litigation due to a person’s failure to plan appropriately. Preparing your plan now gives you peace of mind, protects those you care about and ensures your financial and personal affairs are handled the way you intend.