Health insurance. Get health insurance for the time after your office closes. An insurance broker can help you manage this process. Consider purchasing a plan in the health insurance market.77 www.healthcare.gov/quick-guide/getting-marketplace-health-insurance/. Manage customer files according to your document retention policy. Remind customers of your file retention and destruction policy. Read the WSBA Law Firm Guide to Document Retention99 www.wsba.org/for-legal-professionals/member-support/practice-management/guides/document-retention-guide. for your professional commitments to record retention, the scope of client records and client assets, recommended best practices for document retention, and practice forms. Manage and contact (and possibly close) digital subscriptions and databases. Software services often limit the length of time a previous subscriber has access to their data after termination.
Make sure you export all the information and data you want to keep before you lose access to it. See the terms of use of your software data policy. The document retention section below describes how to keep track of your files. Once you`ve set a date, it`s time to let clients know you`re closing your law practice. It`s important to document good communication that closes your business to customers. Give yourself six months to a year to fully complete your practice. Set a future closing date that takes into account your active records and steps to close your office doors. Advertise your plan externally and stop accepting new cases. Inform your past and present clients that you are closing your law firm. Pursuant to paragraph 1.16(d) of the PRC, a lawyer who leaves the contract must, to the extent possible, protect the interests of a client, for example by giving reasonable notice to the client, handing over documents and property, and reimbursing unearned fees. Document the communication you make about your office closure, including information about when and how you communicated it to your clients.
Let clients know the closing date, the status of their file with you, and how they can transfer their files to themselves or to a new lawyer. Turn to client funds that you hold in trust. Also inform lawyers, courts and other tribunals of the closure of your office. For more information on the announcement, see the Advisory Opinion 201801 Lawyers Moving from One Firm to Another in Private Practice.55 ao.wsba.org/print.aspx?ID=1688. An accomplished lawyer approaches the closure of his practice as a project. You need to make plans to approach closure and manage responsibilities after closure. Here we review the steps to follow when closing a law firm. Think of this as a checklist for dissolving your law firm. Take special care to close your escrow accounts and inform law societies and professional associations of your change of status. Joshua Lenon is a lawyer-in-residence at Clio.
As an attorney admitted to the New York Bar, Joshua brings jurisprudence to conversations that take place both within Clio and with his clients. Joshua has worked hard to educate lawyers on the ability of technology to improve their practice while educating technology companies about the unique needs of the legal system. Reconcile and close your trust account. Ensure that you continue to properly reconcile your escrow account in accordance with Code of Professional Conduct (CPR) 1.15B.11 www.courts.wa.gov/court_rules/pdf/RPC/GA_RPC_01_15B_00.pdf. Repayment or transfer of unused funds from fee deposits pursuant to CPP 1.15A.22 www.courts.wa.gov/court_rules/pdf/RPC/GA_RPC_01_15A_00.pdf. Manage funds you hold for clients or third parties that you cannot find as unclaimed property and file a report with the Department of Finance.33 ucp.dor.wa.gov/app/submit-a-report. Also, ensure that CPP 1.15B is respected with respect to the retention of trust account records. Contact your bank about the fees for closing your escrow account and make sure your account has sufficient funds to cover the fees. (Do not use client funds to cover these fees – you are responsible for these fees.) For more information, see WSBA44 Managing Client Trust Accounts www.wsba.org/docs/default-source/licensing/iolta/managing-client-trust-accounts-booklet(00455604).pdf?sfvrsn=29a13cf1_10. for more information about the fiduciary account. Contracting utilities and managing leases.
Stop your phone and Internet services when your practice closes. Make agreements with your landlord and with suppliers such as office equipment rentals. Tail policy. Contact your malpractice holder and inform them when your office is closed. Consider adding a tail policy. A tail policy adds coverage to your malpractice insurance and provides protection for claims reported after your insurance policy expires. Advertise your plan internally. Inform your employees in a timely manner of your intention to close your practice.
Go through your office closure plan with them and delegate tasks where you can. To incentivize employees to stay and help you graduate, you should offer bonuses. Also consider helping employees find new jobs by using your network to ease the transition. The WSBA provides forms for notifying customers and tracking file transfers:66 Available at www.wsba.org/for-legal-professionals/member-support/practice-management/transition-your-practice#close. Don`t try to close your law firm immediately. Closing a law firm will likely require action over several months. There are many reasons for a law firm to close its doors. Maybe you`re a solo lawyer joining a larger firm as a new partner, maybe you`ve accepted an in-house position, or maybe you`re retiring. Whatever the case, closing a law firm may seem easy. Turn off the lights and lock the door on the last day. Right? The WSBA Lending Library is a free service for WSBA members that offers short-term borrowing of books on topics related to practice management, wellness and career development.
Titles relevant to closing a law firm are: Margeaux Green is a practice management consultant with the Washington State Bar Association and a licensed attorney in Washington. She helps lawyers in individual and small law firms operate effective and efficient law firms, with a focus on best business practices and legal technology.
