Skip to main content
WUHLD
← Back to glossary

GP Partnership Death Provisions

Also known as: Medical Partnership Death Clauses, GP Death Benefits

Definition

GP Partnership Death Provisions are clauses in a medical practice partnership agreement that allow the practice to continue operating when a partner dies, specifying how their share will be valued and paid to their estate.

Without these provisions, UK law automatically dissolves the partnership, forcing liquidation of assets and potentially disrupting patient care.

What Do GP Partnership Death Provisions Mean?

Under Section 33(1) of the Partnership Act 1890, any partnership is automatically dissolved when a partner dies unless the partnership agreement states otherwise. For GP practices, this creates serious problems—dissolution forces asset liquidation, disrupts patient care, and risks the NHS contract. Death provisions override this automatic dissolution, allowing the practice to continue while the deceased partner's share is valued and paid to their estate.

Death provisions specify several elements: partnership continuation with surviving partners, valuation methodology based on assets and profit share, and payment terms to the estate. When Dr. James dies suddenly, his partnership agreement allows Drs. Sarah and Emma to continue their Bristol practice. Independent valuation determines his one-third share at £180,000, with life insurance proceeds funding immediate payment without disrupting finances.

Many partnerships use life insurance to fund buy-outs. Cross-purchase agreements involve partners holding policies on each other, while entity-redemption agreements have the practice hold policies on all partners. Insurance proceeds prevent financial strain while ensuring prompt payment. The estate receives the share's value—not partnership membership—as agreements prevent family members inheriting partnership status.

Common Questions

"What happens to a GP partnership when one partner dies?" Under the Partnership Act 1890, partnerships automatically dissolve on death unless the agreement states otherwise. Well-drafted partnership deeds include provisions allowing practice continuation while the deceased's share is valued and bought out.

"Do GP practices need life insurance for partnership death provisions?" While not legally required, many partnerships use life insurance to fund buy-outs. This ensures funds are available without disrupting finances. Cross-purchase or entity-redemption agreements are common.

"What happens to a deceased GP partner's share of the practice?" The estate receives the share's value, determined by the partnership agreement. Under Section 42 of the Partnership Act 1890, estates receive either profit share or 5% annual interest until payment.

Common Misconceptions

Myth: Our GP partnership will automatically continue if one partner dies—we've been working together for years.

Reality: Under Section 33(1) of the Partnership Act 1890, partnerships automatically dissolve on death unless a written agreement states otherwise. Long-established practices without formal agreements face forced dissolution. The NHS GMS contract survives partner changes, creating false confidence the partnership itself continues.

Myth: My family will automatically inherit my partnership share and can step in to run the practice.

Reality: Families inherit the share's value, not partnership membership. Agreements typically prevent family members joining, as they may lack medical qualifications or compatibility. Partnership interests represent financial value, not transferable status.

  • GP Partnership: The broader partnership structure that death provisions protect.
  • Medical Practice Succession: Comprehensive strategy of which death provisions form one emergency component.
  • Partnership Agreement: Legal document containing death provisions and other partnership clauses.
  • Business Assets: Assets valued to determine the deceased partner's share.
  • Buy-Sell Agreement: Contractual mechanism implementing death provisions with funding details.

Need Help with Your Will?

Understanding partnership death provisions is essential for medical professionals, but your personal will must coordinate with them to protect your family and ensure your partnership share value flows correctly through your estate.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.