Sole Practitioner Succession Planning

Posted on November 4, 2011 by Hull and Hull LLP

Succession planning for sole practitioners can give rise to the implementation of procedures that are of immediate benefit.  Deborah Gillis Q.C. writes in the latest CBA e-newsletter in a piece called "Getting Your Succession Plan Started" about the considerations that should be made for any sole practitioner considering transitioning their practice.  There is good practical advice of interest to anyone in private practice, regardless of whether the motive is succession planning.  Some highlights:  

  • Identify what Gillis calls an "assisting lawyer."  According to Gillis, "An assisting lawyer is the one who will step into your practice on either an emergency or long-term basis in the event of your incapacity or death....What is expected of the assisting lawyer or firm will probably be different, in relation to a long-term illness from which you hope to recover, as opposed to your incapacity or death." 
  • Develop a list of duties that you would expect of your assisting lawyer "so that you can begin discussing a plan that would ensure that he /she will have enough information and authority, to step in when needed, to do what is necessary to protect your clients and your practice."
  • Gillis recommends maintaining a "central calendaring system that is detailed and updated daily, so that whoever steps into your practice can quickly determine filing deadlines, meetings and appearance dates." 
  • Get and keep your files in order to make any transition easier: "Well documented files and well-developed records management systems are critical to the orderly and cost efficient transition of your practice." 
  • Develop an office policy and procedures policy manual, an "extremely important resource for your assisting lawyer when transitioning your practice."

.David M. Smith - Click here for more information on David Smith. 

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Succession Planning for Lawyers

Posted on May 21, 2010 by Hull and Hull LLP

 

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:

  1. Make arrangements for an assisting lawyer to continue, close or transfer your practice on your behalf;
  2. Store all critical information in a location that is easily accessed;
  3. 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
  4. 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.

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