austinbar.org OCTOBER 2023 | VOLUME 32, NUMBER 8
Preparing Your Practice for an Emergency
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o you have a plan in place for when it’s time to retire? What if an unexpected emergency comes up and you have to halt practice, either temporarily or permanently? The topic of succession planning and other issues surrounding the cessation of practice was one of the top initiatives of State Bar of Texas Immediate Past President Laura Gibson. “We started studying this issue back in 2018 with a succession workgroup,” she said in a press release. “By 2021, those efforts led to a new rule authorizing attorneys to voluntarily designate a custodian attorney to assist with the cessation of practice.” Though there are many steps in ceasing a practice, the easiest and most important is appointing a custodian attorney, says the Texas Bar Practice blog. The Texas Bar Practice blog is run by the Law Practice Resources Division of the State Bar. On the blog, the State Bar has published a step-by-step succession planning guide. Called the Succession Planning Toolkit, you’ll find a link that will take you to the State Bar’s webpage where you can designate a custodian attorney. You’ll also find more information on Texas Disciplinary Rule
13.04—the rule that allows for attorneys to designate custodian attorneys. Other topics extensively covered in the toolkit: •File management, including
sample clauses you might want to include in your fee agreements/ termination letters relating to how long you will retain unclaimed client files; •The procedure for ceasing practice, including details especially for court-appointed custodian attorneys, as well as closing IOLTA accounts; and •Transition planning, including helpful tips on handling the various passwords your practice probably uses for financial, social media, and brief filing accounts; the different processes and rules
regarding the dissolution of different types of professional entities; and details relating to temporary cessation of practice. “This toolkit is a one-stop shop for attorneys to find everything they need to plan ahead and prevent their partners or loved ones from being left to handle everything if the unexpected happens,” said State Bar President Cindy V. Tisdale. The toolkit was created by the State Bar’s Law Practice Management Committee and the Law Practice Management Program. AL