Future-Proof Your Practice: A Guide to Law Firm Succession Planning

Safeguards Your Firm’s Finances

When you delay or ignore law firm succession planning, you assume financial risks. In fact, research by the Legal Marketing Association revealed that 63% of partners aged 60 and older are responsible for nearly three-quarters of their firm’s revenue. 

That means most of the firm’s income — and client loyalty — is concentrated in just a few senior attorneys. Without a succession plan, a sudden exit can disrupt billing cycles and shake client confidence.

Succession planning helps preserve that revenue by ensuring client matters are transferred smoothly and relationships are maintained.

Eases Clients Through a Transition

Clients don’t just hire a law firm — they build relationships with the attorneys behind it. When a lawyer leaves without a proper handoff, clients start feeling insecure, unsure who’s taking over their case — or whether they should seek help elsewhere.

Succession planning helps protect those relationships by keeping matters documented, tracking contact history, and communicating the transition in an orderly and transparent manner.

That’s where legal case management software becomes a game-changer. With all client information, documents, and communication in one place, the handoff is smoother and far less likely to send clients running to your competitors.

Keeps Your Team Laser-Focused

Losing a partner without a plan will confuse your team: Who’s responsible for what? What happens to active cases? How are deadlines tracked?

A strong succession plan minimizes disruption by outlining clear responsibilities, documenting workflows, and giving your team a structure to follow. Instead of scrambling, your staff can stay focused on what they do best: serving excellent legal service with clarity and confidence.

5 Musts of an Effective Law Firm Succession Plan

While succession planning requirements vary by state, building a thorough, ethical transition strategy helps firms meet their professional responsibilities and avoid liabilities.

Here are five components that the American Bar Association (ABA) suggests you should include in your succession plan:

1. Appoint a triage attorney

This person will take responsibility for closing, selling, or transferring your practice. Make sure there’s a written agreement outlining their role and authority.

2. Create a checklist of all firm resources

Include passwords, malpractice insurance info, bank and credit card accounts, client documents, vendor contacts, leases, and anything else a successor would need to access.

3. Make IOLTA access simple

Set up the proper bank authorizations beforehand and check your state’s specific rules on adding a second signatory — many don’t accept a bar order alone.

4. Organize all business records in one place

Keep essential items like insurance policies, lease agreements, and staff contact info in one secure, easy-to-access location. Prepare electronic and hard copies for extra protection.

5. Include your firm in your estate plan

Leave instructions for your family and executor regarding your firm’s succession plan. Let them know who your triage attorney is, how to reach them, and where related documents, bank info, and other assets are stored.

4 Steps to Start Your Succession Plan Today

To get started with law firm succession planning, you should consider two scenarios: planned departures and unexpected events.

For both, these four steps will support you along the way:

1. Seek and develop potential successors

You can start early by identifying internal candidates and creating mentorship opportunities to help them build skills in leadership, client management, and all the business aspects of running your practice.

This allows the most promising candidate to take on more responsibility and eventually assume leadership.

If you can’t find the right person internally, you may consider merging with a compatible firm or gradually transferring clients to trusted colleagues who share your values.

2. Set a timeline

For planned transitions like retirement, you can create a schedule based on milestones. When will you announce your plans internally? When will management duties shift hands? Having these dates in writing keeps the process on track.

Your plan should also include immediate action steps for unexpected situations like an illness or disability — who steps in right away, who reaches out to clients, and how operations continue without interruption.

3. Keep clients informed, reassured, and engaged

Any succession planning lawyer will tell you how protecting client relationships during a transition requires transparent, thoughtful communication.

That means scheduling personal meetings to introduce your successor and regular check-ins to reassure clients through the change. For firms representing many clients, it can become quite a challenge. 

Having a legal CRM like Rocket Matter makes it easier to track client interactions and automate follow-ups — helping your successor maintain consistent, organized communication from day one.