Succession Planning for Lawyers
Estates lawyers are particularly good at advising others as to the importance of an air-tight succession plan. But when it comes to our own succession planning, there are special considerations that lawyers, or any professional, should take into account.
Sole practitioners make up 23% of Ontario lawyers. When you add the number of solos to those working in small firms, you get a whopping 97% of firms in Ontario with 1-10 lawyers. In such situations, there may not be anyone ready, willing and able to step in for a lawyer who suddenly can not carry on his or her practice.
Lawyers have ethical and professional obligations to their clients. This includes a duty to safeguard clients’ interests in the event of the lawyer’s untimely death, disability, impairment or incapacity. Not only could a client face significant prejudice or damages, but without proper planning, the obligations may fall to the lawyer’s family, causing additional stress no one would wish on loved ones.
Here are some practical tips:
- Make arrangements for an assisting lawyer to continue, close or transfer your practice on your behalf;
- Store all critical information in a location that is easily accessed;
- Have the appropriate Powers of Attorney in place that are required to allow the assisting lawyer to step in and run your practice (limited, bank, etc.); and
- Include in your Will an executor who is a lawyer.
Click here for some guidelines for the lawyer stepping in to take over the practice from the Law Society of Upper Canada's Website. Also from LSUC is the Succession Planning Tool Kit. See here and here for succession planning resources from the Law Society of British Columbia's website.
For some variety, you might also want to pick up the materials from the 5th Annual Solo and Small Firm Conference held May 14, 2010 in Toronto, where you can find tips on succession planning as well as other useful information to assist your practice.
Sharon Davis - Click here to learn more about Sharon Davis.
