When a licensee is unable to practice law or provide legal services, the licensee’s business and their clients are in jeopardy.  Licensees without a succession plan or business continuity plan, require their law society’s Trustee Services Department to step in to protect, preserve, and distribute client trust monies and property.  Without a plan, court dates and appearances and transaction closings can be missed.  Having a plan is good business practice, in the public’s interest, and in the licensee’s best interest.  With a good plan, business value and reputation can be retained.  Plus, instructions and clarity can be brought to the successor/executor and lessen their burden during distressing times. 

Currently, the Trustee Services Department of the Law Society of Ontario (“LSO”) costs about $2million to operate a year.  In just a decade, the budget almost doubled.  With the fast growing group of aging licensees, without intervention, the need for Trustee Services is only expected to rise.  The costs for the Trustee Services Department is borne by licensees.  It’s in every licensee’s interest to minimize its law society’s expenses and its licensee’s annual fees. 

The Nova Scotia Barristers’ Society, the Law Society of Saskatchewan, and the Law Society of the Northwest Territories have mandatory successional planning for their licensees.  Currently, contingency planning is only recommended by LSO.  Here is the link to LSO’s guide which also includes business structure considerations, sample documents and clauses, and more practice tips.

Currently LSO’s Professional Regulation Committee is inviting feedback from lawyers, paralegals, legal organizations, stakeholders, and the public about its recommendations listed under its Mandatory Succession Planning consultation report.  The consultation report includes recommendations such as a succession plan template, continuing professional development practice supports, implementation through annual reporting, and trust account management tips, just to name a few.  There are currently no decisions with respect to the structure or content of LSO’s mandatory succession plan.  You can submit your feedback through this link until November 30, 2022.  This feedback will provide LSO with critical input on their decision to make recommendations to Convocation. 

Thanks for reading.
Jennifer Wan