Succession Planning for your Law Firm, Part 1/3

Why should you have a succession plan for your law firm?

This is part 1 of our series on law firm succession planning. In this post, we discuss why you should have a succession plan for your law firm.

1. Law firm succession planning is essential for expected and unexpected events. Many attorneys assume they only need a succession plan when they are nearing retirement, but you also need to plan for unexpected events like an urgent change in leadership due to sudden illness, disability, a family emergency, or death. Although these things are difficult to think about, you do not want to leave your employees or clients wondering what to do when an attorney at your firm is no longer available to work (and, for these reasons, succession planning is required under most states’ ethics rules). 
2. Protect your clients and your business. The above-mentioned situations are difficult to think about; however, law firm succession planning is not only for you - it is also for your clients and anyone who works with you or for you. Solo and small lawyers risk their clients and their businesses if they do not have a proper succession plan. You do not want your employees or clients scrambling to deal with difficult situations while also struggling to get essential documents together during periods of stress and uncertainty. 
3. Succession planning is an integral part of your law firm's business strategy. A succession plan gives you peace of mind and ensures your clients are taken care of if anything happens to you. A successful business is measured not only in its profits, but also in its ability to last. The firm should have a life that is longer than you. Therefore, succession planning is fundamental to the success of the practice. A succession plan helps add value to your business because it prevents your business from being disrupted by conflict or uncertainty. An inability to transition properly–real or perceived-may decrease the value of your firm. 
4. Insurance. Many insurers look for a formal succession plan in place when evaluating your law firm's risk and insurance cost. Having a proper succession plan in place will assist you during their underwriting process, and it may decrease your insurance costs. 

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.