I’ve previously blogged about Law Society of Ontario’s Talks of Mandatory Succession Planning for Private Practitioners.  The Committee is currently reviewing the input and we look forward to their advice to Convocation regarding adopting the recommendations of the Trustee Services Working Group.

In any event, it is in a lawyer’s interest and in the public’s interest for licensees in private practice to maintain a succession plan or business continuity plan to manage their legal services business during their absence.  Absence can occur by disability, incapacity, abandonment, or death.

Preparing a Last Will and Testament is the well known practice for estate planning.  Sole Practitioners who run their legal services business as a sole proprietor or the sole shareholder of a professional corporation should consider preparing a Law Practice Will.

The Law Practice Will is separate from the Last Will and Testament and authorizes the Replacement Lawyer to operate, sell, or wind down the law practice.  Likewise, a Continuing Power of Attorney for Property for Law Practice should be implemented by the Sole Practitioner as well.  The named Executor under the General Estate Will and Continuing Power of Attorney for Property governing Personal Assets should be different from the named Replacement Lawyer under the Law Practice Will and Continuing Power of Attorney for Property for Law Practice such that the Executor would oversee the Replacement Lawyer regarding particular matters such as negotiating the sale price of the legal services business to the Replacement Lawyer.  

In addition to preparing documents, there are additional tasks to ensure a smoother transition between the Sole Practitioner and the Replacement Lawyer.  The Law Society of Ontario outlines some issues here for sole practitioners to consider, including: life insurance policy beneficiary designations and continuing executorship/trusteeship appointments for clients.  Selecting a Replacement Lawyer is very important task.  Here’s a link to the list of issues the Sole Practitioner should discuss with the Replacement Lawyer and further tasks the Sole Practitioner should do such as ensuring their legal service business’s bank’s requirements are met to ensure a smooth transition and that there are sufficient funds available to continue the legal service business during transition (e.g. unused line of credit, life or disability insurance, etc.).

The Law Society of Ontario provides many guides and sample clauses for sole practitioners.  Here are some of their links for your quick reference:

–Contingency Planning for Lawyers Guide
–Key Contingency Planning Steps for a Lawyer Practicing as a Sole Practitioner
–Sample clauses under Last Will and Testament and the Law Practice Will
–Sample Law Practice Coverage Agreement between the Testator and the Sole Practitioner and the Replacement Lawyer
–Sample Continuing Power of Attorney for Property excluding Law Practice
–Sample Continuing Power of Attorney for Property for Law Practice
–Sample Direction for the Release of the Power of Attorney for Property for Law Practice Document

Thanks for reading.

Jennifer Wan