1.11 Planning for the Succession of a Law Practice

• Library: The Virginia Lawyer: A Deskbook for Practitioners (Virginia CLE) (2022 Ed.)

1.11 PLANNING FOR THE SUCCESSION OF A LAW PRACTICE

1.1101 Notifying Clients.

Although planning for one's own death and disability is sobering, attorneys have ethical responsibilities to do so, particularly sole practitioners. ²³⁵ LEO 298 permits a retiring attorney to notify clients of upcoming retirement and advise that the firm will continue to handle pending matters or that the client may elect to retain new counsel.

1.1102 Expert Advice.

Just as an attorney seeking estate planning advice is well-advised to seek out a specialist in trust and estate law, expert attorney advice is helpful when considering options regarding the succession of a law practice. Generalized advice is of limited value given each practice's unique situation and differing tax issues. A succession plan could be as simple as a buy-sell agreement between partners. Succession plans should be reassessed regularly to ensure that the plan is still suitable for the current situation of the firm and its members.

1.1103 Sale of Practice.

Ethical Consideration 4-6 formerly prohibited the sale of a law practice, but current Rule 1.17 of the Virginia Rule of Professional Conduct permits attorneys to sell practices. In order to sell a...