Succession Planning for your Law Firm, Part 2/3

How to build a law firm succession plan

This is Part 2 in our series on law firm succession planning: in this post we address how to build a law firm succession plan. 

1. Ethical obligations. Most U.S. states require lawyers to have a succession plan in place via the rules of professional conduct. The rules require you pay attention to items that affect and protect your clients. 
2. Appoint a transition lawyer. A transition lawyer is someone you will authorize to run your practice during a period of change. This person may be authorized to close, sell, or otherwise transfer your practice per your direction. We recommend that you have a detailed written agreement with your transition lawyer that defines the relationship and the duties of the lawyer. Also, this agreement should authorize the lawyer to transact business on behalf of a set period of time, and to do things such as keep people employed, contact clients, and collect on invoices. 
3. Gather key office information in one place. Your important office information must be accessible to someone other than you. This includes things such as passwords and bank account access information. It also includes a list of business records, such as client names and contact information; leases and contracts for your office space, equipment, etc.; your business insurance policies; a list of vendors and other service providers’ contact information; and staff names and contact information.
4. Estate planning documents. Ultimately, the proceeds from your law practice will feed into your general estate planning documents. Therefore, it is essential that your estate planning documents are up to date and work in concert with your law firm's succession plan. Accordingly, your estate planning documents should include contact information about the transition attorney, and it should contain directions on how the transition attorney will communicate with the personal representative of your estate.

For assistance with any legal matters related to your business or estate planning, contact Fournier Legal Services at jfournier@jeflegal.com or 860.670.3535 now for a free consultation and planning session.