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Archive for the ‘Succession Planning’ Category

“How long do I have to keep my old, closed client files?” Believe it or not, that is the number one question we get asked in the Practice Management Assistance Program (PMAP). Not a week goes by that someone doesn’t ask it. Our Risk Management Counsel, Jill Rothstein, hears it just as often.

So, what’s the answer? We wish we knew for sure. The SC Rules of Professional Conduct are clear that lawyers must safeguard their clients’ property, but for how long isn’t clear. Appellate Court Rule 417 ‘Financial Recordkeeping‘ cites six years after termination of representation for financial records. It is probably this rule that leads lawyers to extrapolate that six years is a good rule of thumb to follow for keeping old files. But I often hear of firms who keep them longer. The record for longest amount of time is held by a small firm lawyer who inherited the practice from his father, who bought it from another lawyer. They had about 95 years’ worth of files.

moldy files

The Bar Ethics Advisory Committee has done its utmost to assist lawyers by issuing an FAQ (frequently asked question) on the matter. FAQ #1 can be found online. Be sure to read it before forming your own office policy.

… will your practice look like this?

Actual office of a deceased lawyer. An attorney was appointed by the Court to protect the clients’ interests and close the office permanently.

If you are a solo practitioner and you don’t have a succession plan — an agreement with another lawyer, a letter of instructions to family, or some indication of how to take over your practice at a moment’s notice — you could be leaving behind a messy, even tragic, situation. Many lawyers don’t realize that if they die, the burden of closing their practice could fall on their family’s shoulders. For a clearer picture of what actually happens when a lawyer dies, read When You Go to Heaven, Will Your Practice Go to Hell? an article I wrote with Reid Trautz in the January 2009 issue of the ABA Law Practice Management Section’s Law Practice Today.

The entire office was in a state of total disarray.

If you are ready to take action to protect your clients and loved ones, contact your practice management advisor at your state Bar for assistance.  South Carolina Bar members can contact me at pmap@scbar.org and visit the PMAP pages on Winding Down for more succession planning advice.