TYates: Welcome to the retirement information. Webinar. We are recording this webinar following 3 in-person sessions in Calgary, Edmonton, and Lethbridge.
TYates: These sessions and this Webinar are a collaboration between the practice management membership and trust safety departments.
TYates: before we get started. We want to acknowledge the traditional lands and territories of the indigenous peoples who have lived on these lands and have taken care of them since time immemorial.
TYates: What became known as the Province of Alberta in 19 0. 5, is also the traditional and ancestral home to many indigenous peoples, and for that we are honoured to have shared this land with them, since Treaties 6, 7, and 8 were entered into.
TYates: What became known as the Province of Alberta is also the historical Northwest Metis homeland, which includes 5 territories.
TYates: We acknowledge the many 1st nations Metis and Inuit, who have lived on and cared for these lands for generations.
TYates: We are grateful for the traditional knowledge keepers and elders who are still with us today, and those who have gone before us.
TYates: We make this acknowledgment as an act of reconciliation and gratitude to those whose territory we reside on, or are visiting
TYates: the agenda. For this Webinar will also serve as an index and guide for the chronological steps you may need to take to prepare for retirement.
TYates: We will strive to speak to as many scenarios as we can, based on different practice areas and circumstances.
TYates: Some information will apply to you, and some likely won't.
TYates: I will cover information for lawyers who are winding up their firm lawyers who are transferring files to a successor and lawyers that are retiring from a firm or partnership.
TYates: There will be additional tasks for those who are the responsible lawyer for their firm, and the steps will look different for sole practitioners.
TYates: We'll look at these various scenarios from the understanding that it is ultimately up to us to make sure that we continue to meet our professional obligations to our clients throughout the retirement process and beyond.
TYates: It is our intention that this web webinar will provide you with a better sense of the order of operations and timing required.
TYates: None of these tasks are difficult, but they do require time and attention.
TYates: We hope that advanced planning will help alleviate challenges and provide some peace of mind. As you move forward.
TYates: We are going to start off with a bit about what some might call the soft stuff.
TYates: but actually it is the hard stuff, because making the decision to retire can be really hard, and there are a lot of considerations that go into it.
TYates: You've got personal and financial considerations, and then you need to figure out who you're going to talk to about each.
TYates: Your personal considerations are your why think about it? What is your why? There are lots of reasons why you may be thinking of winding up your practice. It could be the logical next step
TYates: for personal health and well-being, either yours or maybe a family member's.
TYates: Maybe it's what you have planned from day one.
TYates: It could be tied to changes in the practice of law
TYates: or increased use of technology in offices and the courts.
TYates: or just because you need a change.
TYates: It's likely a combination. In any case, the goal is to help you exit practice on your terms.
TYates: It is also likely you will need to consider your financial situation.
TYates: Can you afford to retire?
TYates: What will you do after you retire?
TYates: Do you want to relax and travel, or do you hope to consult, coach, teach, write.
TYates: or expand into mediation and arbitration.
TYates: start to consider what you want to do, and why
TYates: do you need to take any courses or further training
TYates: this matters because it may be tied to the membership status you carry with the Law society.
TYates: If you are going to provide legal services or give legal advice, you will need to keep your active status
TYates: in our experience. Working with lawyers. As the big day approaches, some may start to get cold feet. It's the unknown, possibly.
TYates: but often the anxiousness comes from realizing that they maybe haven't given themselves enough time to do everything that winding up requires.
TYates: Usually retirement meets or exceeds expectations, but some may want to return.
TYates: That means going from inactive or retired status back to active.
TYates: This will entail a reinstatement process. It will take fees and may take some time.
TYates: That's why it's important to get a full picture of what the winding up process looks like and do as much advanced planning as possible.
TYates: Also consider when and how to talk to your firm, your partners, or your employer.
TYates: Then line up conversations with your financial team, maybe a business valuator, and maybe your own lawyer.
TYates: whether you are solo, an employee employee or are retiring from a partnership. The money and tax implications need to be top of mind.
TYates: If you are retiring from a partnership
TYates: review the partnership agreement before you give notice. If you are an association of independent practitioners, check out any equipment, sharing or other agreements.
TYates: and get professional advice on the tax and financial ramifications of exit.
TYates: You may also need professional advice and time to manage your professional corporation and limited liability partnerships.
TYates: If you are in-house, you might have stock options or pension assets to consider. What do you need to manage for that.
TYates: Are there any trigger dates?
TYates: We won't get into much information about selling your practice except to recommend talking to a business valuator, they are better positioned to assist
TYates: your own idea around its value may be subjective, or you might do certain things to make it more attractive to a successor.
TYates: You may find some ideas about selling your practice through the locum connect and solo net programs on our website or through the Cba.
TYates: There are many things that we will cover today that will help in this regard, including cleaning up, clearing out, organizing, possibly modernizing.
TYates: as you consider and plan for winding up and retiring, expect to have conversations with the Lsa. Including the membership department, about your status, managing your PC. Your fees, invoices, and ongoing communication.
TYates: You'll have conversations with the Trust Safety Department. If you have a trust account or other financial obligations for your firm.
TYates: you will also likely have conversations with Practice Management Department for support and resources on file and client management, storage and destruction of closed files and overall guidance about the retirement process.
TYates: To that end you can request. A practice management, consultation
TYates: and practice management will reach out to you to schedule a 1-on-one meeting with practice management council over teams or by the telephone.
TYates: You can also contact the practice advisors. They can provide valuable insight and guidance on any ethical issues you may encounter.
TYates: Please also remember that assist provides free and confidential counseling to Alberta, lawyers, articling students, law students, and members of their families.
TYates: A consultation with a professional counselor during a period of transition is often really helpful, especially if you are struggling with making this decision.
TYates: Let's talk a little more about additional considerations that go into this decision.
TYates: such as, do you have a succession plan.
TYates: Is there someone in your firm that could possibly take over your files.
TYates: or maybe someone outside the firm?
TYates: If you do have a succession plan. It will be helpful to build in a transition period for your successor to help them create a relationship with your clients.
TYates: This will provide comfort to your client as well as you. Transition to retirement.
TYates: If you are selling your practice.
TYates: the agreement will likely confirm that it is the client's option to choose what happens to their file.
TYates: and probably will address potential conflicts of interest and arrangements for fees and accounts receivable.
TYates: if you are in a firm and other members of your firm will be taking on your clients. You will want to map out this transition as well for the benefit of the client.
TYates: Are you in a firm and the designated responsible lawyer.
TYates: This would be a good time to consider when someone else in the firm should apply to take over as the responsible lawyer.
TYates: It often takes trust safety around 3 weeks to process these applications.
TYates: And of course you will be thinking about your team.
TYates: They are important to you. They may have been with you for years
TYates: and have their own needs to address.
TYates: Maybe they have had an idea that this was happening for a long time, but still you will want to give them as much advance notice as you can
TYates: that said.
TYates: you will also need to deal with it as you need to. In your unique circumstance. You may have other concerns about how things will play out. Once you tell them about your retirement, and winding up.
TYates: you will have to continue to exercise supervision and properly delegate matters. During this time
TYates: you will need to think about notice or compensation in lieu.
TYates: You will need to check statutory notice requirements.
TYates: You may want to review terms of any employment contracts.
TYates: You may have to manage employment employee benefit plans.
TYates: and you will need to look to have records of employment, and T. 4 s. Prepared.
TYates: and make sure that key remittances
TYates: have been made and are up to date.
TYates: If you have articling students and you go inactive and retired.
TYates: you won't be able to continue on as principal.
TYates: so you will also need to manage the timing of your transition to ensure that your student can find a new Lsa approved principal and transfer their articles
TYates: in terms of financial records and technology.
TYates: Think about what you will do with the data like what is in your accounting software.
TYates: you might be on a subscription.
TYates: So what happens when that runs out?
TYates: You will need to carefully review the terms of service.
TYates: You will have to think about the potential of downloading and storing the data.
TYates: There are several different options, including external hard drives
TYates: and looking at redundancy, maybe cloud-based storage.
TYates: In any event, it must be secure, confidential, and accessible.
TYates: There are other some big thing. There are other big things to manage as well your premises, office, equipment.
TYates: maybe other kinds of subscriptions, and possibly social media.
TYates: You may be working around rent and lease agreements.
TYates: and that might drive your date of retirement.
TYates: Also, you will need to think about office furniture and equipment.
TYates: which may be returned, maybe sold, maybe donated.
TYates: You will need to think about ensuring that hard drives on computers, photocopiers, and fax machines have been wiped of data, and if appropriate, destroyed.
TYates: you do not want to inadvertently breach client confidentiality.
TYates: You may also need to notify vendors and suppliers possibly cancel utilities.
TYates: You will also want to think about your social media profiles and updating them, or possibly deleting them when they are no longer necessary.
TYates: There are a number of membership status options you will want to consider when you are planning for your retirement.
TYates: I want to give you a quick overview of some of some of the most common statuses and important factors to consider for each.
TYates: The active, indemnified status is the status you likely currently have.
TYates: You have active status and are practicing law and providing legal services.
TYates: This status has a full membership fee and requires a lea indemnity.
TYates: The active, non-practicing status is where you would maintain active status, but not be practicing law or providing legal services.
TYates: One of the benefits of this status is that it has an expedited reinstatement process and no reinstatement fee.
TYates: You are also able to keep your PC. With this status.
TYates: although there is no physical form to fill out for this status. You would need to submit your application through the lawyer portal.
TYates: The membership fee for this status is one half of the full membership fee, because you are not practicing
TYates: the Aaliyah indemnity is not required.
TYates: This status is a good
TYates: placeholder status. If you are not entirely certain that you are ready for retirement, and may want to have some flexibility while you make your final decision.
TYates: Active part-time status is where you are still in private practice.
TYates: but only practicing on a part-time basis. You're providing legal services to the public.
TYates: A full alia. Indemnity is required for this status.
TYates: The part-time active practicing membership fee is one half of the full fee.
TYates: Again, there is no physical form available, and you would need to submit
TYates: your application for active part-time status through the lawyer portal
TYates: to qualify for this status. You need to have an annual total gross income of less than $100,000, and work 750 h or fewer annually related to the delivery of legal services.
TYates: The active pro bono status is where you provide pro bono legal services exclusively through an alternative legal service provider on a volunteer basis.
TYates: The Aaliyah indemnity is not required.
TYates: and the pro bono membership fee is currently sitting at $252 annually. But this is subject to change.
TYates: You can find further information on alternative legal service providers on our website.
TYates: The inactive status is where you would maintain membership with the Lsa. But you would no longer be practicing law or providing legal advice.
TYates: There is no physical form for this status, and you would submit the application through the lawyer portal.
TYates: The inactive membership fee is also currently set at $252.
TYates: No indemnity is required.
TYates: The retired status requires eligibility.
TYates: So, to be eligible for the retired status, you must be 70 years old, and have practiced in Alberta for 25 years.
TYates: What can you do with an inactive retired status.
TYates: You cannot provide legal services or advice.
TYates: but you can continue to notarize and commission documents, and also act as mediator or arbitrator.
TYates: Please note that in terms of determining timing
TYates: the Alia indemnity, levy is non-refundable, so you will not get any money back if you retire in the middle of the period you pay for.
TYates: you will continue to be covered for any claims that arise from work you did while you had Alia Coverage.
TYates: Another note is that membership fees
TYates: are prorated, and you may receive a portion refunded.
TYates: If you retire in the middle of the period that you have paid for
TYates: an additional note about changing to an inactive status.
TYates: If you are interested in obtaining the 30 year or 50 year certificates for active practice in Alberta, you'll want to plan, so that you were active on December 31st of the year of that anniversary. So if your call was in June of 1995, you would want to maintain active status until December 31st of 2025, in order to receive that recognition.
TYates: So, choosing an effective date.
TYates: the key to winding up safely and effectively is to determine the effective date. You want to make your transition out of law and then map out your timelines.
TYates: The best way to do this is actually set your date.
TYates: assess all of the steps that need to be done to get you there and work backwards. Attaching roughed out dates to each of these tasks.
TYates: depending on your circumstances, there may be many steps to your process, so you will want to give yourself enough time.
TYates: for instance, you cannot expect that you can announce your retirement to your clients, and assume they will arrive the next day to pick up their files.
TYates: nor can you assume that you can wind up various existing matters, send out accounts on files, and get paid all within a month or 2.
TYates: So why does this exercise matter so much?
TYates: You will not hit a target if you don't 1st identify what target you want to hit.
TYates: It has to be clear and precise, and from there you can start to take steps
TYates: to help you do this. We have a retirement checklist at the end of the retirement guide where you can rough out your own target dates.
TYates: The retirement guide link is provided at the end of this Powerpoint.
TYates: When you look at all that needs to be done that might help you pick your date, you will be able to see what interim steps apply to your practice, and which do not.
TYates: You might look at this and still wonder, how do folks actually pick a date?
TYates: So let's talk this through.
TYates: Maybe, as we mentioned before, you will align it with the cycle of fees at the Law Society.
TYates: Many members want to retire before they pay their membership fees, which are due on March 15, th
TYates: the Alia fee deadlines at the end of June, and the end of December also makes sense.
TYates: Consider if you have any surcharges as well.
TYates: and if you have a PC.
TYates: That fee payment is a year-end due date.
TYates: So many want to wind up on a calendar year end. Think about what will work best for you.
TYates: Do you need to involve your accountant in this type of decision?
TYates: You will also want to consider whether you have obligations to your firm, your partners, or other practitioners with whom you are practicing in an association.
TYates: You can't choose this date in a vacuum without guard for the other players.
TYates: You need to also review contractual obligations you have, and whether you need to meet notice requirements.
TYates: And, practically speaking, you know the operations of the firm, and what is the best timeline that might leave your colleagues in a better position.
TYates: You will need to consider your practice areas and how long a typical file takes
TYates: court work and transactional work require the same thoughtfulness.
TYates: What is new? What is on the go? What is almost done?
TYates: Perhaps there will be someone with whom you work in your firm or partnership.
TYates: who you will transition some of these files to
TYates: while there are still some steps here.
TYates: This is certainly an easier option.
TYates: If you are on your own, it's a bit more complicated.
TYates: It may be tough to turn away work from loyal clients, but you will have to make this call at some point.
TYates: Departing during a newly opened file is unfair to the client.
TYates: Therefore it's really important to decide when you start to decline new work.
TYates: Reducing the number of files is essential to focus on the work you need to do, both on the final file matters and also on your retirement.
TYates: Fewer clients just naturally gives you more time to do all the tasks that are before you.
TYates: Some lawyers who are planning to retire, do it over a year or 2 by gradually reducing their client load and their work week.
TYates: Some lawyers who are planning to retire do it over a year or 2 by gradually reducing their client load and their work week.
TYates: This is kind of an ideal situation.
TYates: Finally, take a moment to think about the type of practice. You have run over the years and the specific documents with which you work.
TYates: Do you keep client originals?
TYates: We'll discuss this further later. But if you do have original documents, you will need to attend to these as well.
TYates: Our point is to just help you focus on all the key considerations to help you
TYates: determine the best date to close up shop
TYates: on the trust safety side of things. As you prepare for retirement. It is important to start by reviewing all of your open matters to identify. If you have any remaining funds in trust.
TYates: you will want to bill out any remaining client funds. If there are funds left in a client matter, determine whether they should be invoiced and ensure that they are properly billed and cleared.
TYates: You should also check outstanding accounts receivable.
TYates: The goal is to either collect these amounts, or, if collection isn't feasible, write them off to keep your books clean.
TYates: You should also return client funds, including undispersable funds.
TYates: resolving undispersable funds, should be one of the 1st things you consider. Once you make the decision to retire.
TYates: In fact, this is something that should be done regularly, even outside of retirement, planning what are undispersable funds.
TYates: These are funds that have been sitting in a client ledger for over 2 years with no activity.
TYates: Your 1st step in dealing with undispersable funds should always be to try to return them to the client.
TYates: If you can't locate the client. After reasonable efforts, the rules allow firms to remit undispersable funds to the Law Society.
TYates: Before doing so you must have held those funds, those trust funds for more than 2 years, and you must have made reasonable efforts to locate the client.
TYates: So what qualifies as reasonable efforts you must attempt to contact the client at least 3 times using different methods.
TYates: For example, if mailing a check doesn't work, try emailing them, calling them, or even doing a Google or Linkedin search.
TYates: simply sending a check to the last known address is not enough.
TYates: What if the client refuses to deposit the check that you've sent?
TYates: If you are in contact with a client, but they won't deposit the check. You can ask for written directions to send the funds through bank draft
TYates: or electronic transfer.
TYates: But remember for you to do this, you will always have to retain their instructions.
TYates: If they still refuse to do so.
TYates: you can notify them that the funds will be sent to the Law Society. If the check is not cashed by a certain date.
TYates: then, as a last resort, you can proceed with remitting the funds to the Law Society. Along with all the supporting documentation of your attempts to disperse the funds, including correspondence with the client
TYates: for submitting funds to the Law society, you must 1st complete an undispersable funds, request, form and submit it to trust safety through email.
TYates: The link to the form is available at in the Powerpoint.
TYates: Once the Law Society reviews, receives.
TYates: Pardon me.
TYates: the trust safety team will receive and review the request
TYates: and either approve it or reject it.
TYates: There are strict review requirements, especially for undispersable amounts over $50.
TYates: You must provide proof of at least 3 unique contact attempts using different methods, such as copies of emails, mail records, phone logs, screenshots.
TYates: screenshots of search attempts.
TYates: If your request lacks sufficient documentation, it will be returned
TYates: as part of your efforts in locating the client. If your firm incurs reasonable expenses while trying to locate and contact the client, you can render an account and apply against the trust funds.
TYates: However, the cost should be proportionate to the amount held in trust.
TYates: The entire process, from submitting the undispersable funds request form to the Law Society, reviewing it and approving it to the actual submission of funds can take up to 3 months.
TYates: So if you're planning to retire
TYates: and you have undispersables, you will need to start looking into these funds as soon as possible.
TYates: and as mentioned, even if retirement isn't on the horizon, this really should be an annual process to keep your trust account clean.
TYates: Now we are going to look at taking a true inventory of your open and active files.
TYates: This means figure out which files are still actually on the go and how you are going to handle them.
TYates: We suggest a really practical step here, create a master file list to help you track open files efficiently and effectively. We've included a link for sample master File lists in this Powerpoint, and we urge you to build this document to serve your needs and practice areas.
TYates: So what is a master file list?
TYates: It is a centralized snapshot of your practice. You likely have practice management software when you print off your client list. It actually doesn't give you a snapshot of where each file is at what might need to be done. What's coming up, or any special notes you want added to the file.
TYates: A master file list gives you all of your files at a glance.
TYates: If you had to be away rather than print off your client list and try to sort through your emails and your calendar to try to figure out where things are at.
TYates: Someone else could pick up your master file list and see the overview. What is on your plate. At a glance.
TYates: We recommend creating separate master file list for each practice area. There may be some columns specific to the practice area. For example, limitation dates in civil litigation files.
TYates: I open mine 1st thing each day update it as necessary, and review it each night to see what's coming
TYates: on Friday afternoons. I scan it to see what I might need to do this weekend, or if everything is in order, I can walk away for the weekend, knowing that I will attend to it next week.
TYates: I suspect, after all your years in practice. You might also have a version of this tool, your own file tracker.
TYates: This very basic tool is going to really help you set up for success as you prepare for retirement.
TYates: This is the point where you assess each file in preparation for next steps.
TYates: we would suggest that your master file list would include the next steps, key dates that are coming.
TYates: the money you have in trust, or the status of billing and collecting.
TYates: and then also the client's choice about what should be done with the file.
TYates: including relating to the client instructions and status of the file.
TYates: This is kind of the minimum of what we would suggest.
TYates: Consider that you must contact each and every client about your upcoming retirement and transition.
TYates: and you will want to track these communications.
TYates: you will feel confident, knowing key information is in one place, the status of each individual file and the monitoring of steps.
TYates: and I also want to clarify here that we always recommend that all lawyers have a master file list, regardless of intention to retire.
TYates: It is so beneficial for business continuity and succession planning, but also day-to-day firm administration, and most importantly, because it is a solid process that provides peace of mind, that all clients are being served.
TYates: If your horizon, for retirement is further down the road. This is a task you can start now and then, use until such time as you retire.
TYates: Whatever you do early on, get a good handle on your open files, and create a mechanism to track their status.
TYates: Notifying your clients is an important step of the retirement process.
TYates: You have to notify your clients and not just verbally.
TYates: You will need to contact all clients with active files and tell them what is happening, and set out their choices in relation to their files, and any trust funds
TYates: inform them in writing that it is their choice. What happens with their file?
TYates: They may have your current firm, if that's the case, continue to represent them, in which case the file will be handled by your successor at the firm.
TYates: or they may choose to have someone else. Maybe someone you refer them to to continue to represent them.
TYates: or they may choose to have another lawyer or firm represent them.
TYates: and they could also choose to pick up their file.
TYates: Tell them that they can instruct where their file will go, and that you and they will have to make arrangements about paying their account.
TYates: If they have funds in trust, you will need their written authorization to trust to transfer any trust funds.
TYates: Please remember that legal aid clients will have a different process. Legal aid certificates cannot be transferred to another lawyer.
TYates: You should notify the appropriate legal aid office of the files that are affected, your reason for withdrawing and send a final bill.
TYates: You will need to notify your client
TYates: to contact legal aid, to seek a new lawyer and a new certificate.
TYates: If there are imminent dates on matters. Address next steps with the client and the client's new lawyer.
TYates: You might need instructions to get adjournments or extensions.
TYates: You may also need to arrange to get off the record after consulting with the client.
TYates: This is a good time to work to close the files that you can
TYates: prepare and send out your final statements of account.
TYates: If you are working on a contingency fee basis.
TYates: look to the contingency fee agreement
TYates: for the amount you will receive if you withdraw before a matter is complete.
TYates: If the agreement doesn't address this.
TYates: then you will need to reach an agreement on fees with your new client and their new lawyer.
TYates: Sorry
TYates: if the agreement does not address this, then you will need to reach a new agreement on fees with your client and their new lawyer.
TYates: Be sure to bill out any files while you still have active status
TYates: you can collect while you are inactive or retired.
TYates: using the general account for these collections.
TYates: Now we are going to look at file, transfer and other matters.
TYates: The bottom line is you need to get each file ready to hand over to whomever will carry it.
TYates: Memo these files so that each file can speak for itself.
TYates: It will make it so much easier if the lawyer has a memo to refer to when they pick it up to carry it on.
TYates: This is good for your client, and also for the for the new lawyer.
TYates: Memoing files also helps you manage any ongoing obligations that you have on the file, or things you need to take care of like undertakings or trust conditions
TYates: so that you can either fulfill them, be relieved of them.
TYates: possibly have them transferred to another lawyer.
TYates: and you can indicate, if you need to possibly file a change of address. Notice at the Land Titles Office.
TYates: Maybe you should be adding these steps, undertakings.
TYates: and trust conditions to your master. File list as well.
TYates: just to keep your sight on them.
TYates: If the your client instructs that the file will be transferred out, let them
TYates: and their new lawyer, no one writing
TYates: how, when, and where they can pick up their file.
TYates: any limitations or other important dates.
TYates: and any immediate steps they need to take on the file.
TYates: Think about whether and how much of a client's file you wish to copy before releasing it.
TYates: You cannot charge your client for making your copy.
TYates: If they do not retrieve their file or give you instructions.
TYates: Including the contact information of their new lawyer or the custodian who is responsible for holding holding their file.
TYates: You will need to contact. Sorry I'm going to go back.
TYates: If they do not retrieve their file or tell you what to do with it. Give them the contact, information of the lawyer or custodian who is responsible for holding their file and any money or other property you are holding in trust.
TYates: Please contact the Practice Advisor's office. If you have any questions on how to manage these more difficult situations
TYates: in terms of holding original wills. Hopefully you are not. But if you do have original wills in your possession or original estate planning documents in your possession, you are likely not alone.
TYates: What should you do?
TYates: Try to contact your clients and return the originals to them?
TYates: If you can do that, that is fantastic.
TYates: and have them sign an acknowledgement of receipt.
TYates: and provide them with written confirmation, that they have the original, and that you have only kept a scanned copy
TYates: if you are not able to return original documents.
TYates: try to transfer them to another lawyer.
TYates: If you cannot do either of these things, return the documents. The original documents to your client, or transfer them to a new lawyer.
TYates: You will be responsible for keeping these original wills in your possession.
TYates: You will need to keep them safe, confidential, and secure.
TYates: You should prepare a list of all of the original wills or estate planning documents you continue to have in your possession.
TYates: You will also need to take stock of whether you have agreed to be executor or trustee for any of your clients.
TYates: If you no longer want to act in that capacity.
TYates: Ask the testator to revise their will or add a codicil appointing someone else.
TYates: If the testator can't be located, you should get legal advice.
TYates: Maybe you will be advised to attach a renunciation to the will if you are still holding the original.
TYates: Also a reminder of Rule 119.4 4, where a lawyer is acting in a representative capacity.
TYates: basically, money received while acting in a representative capacity and not directly related to the provision of legal services
TYates: has to go into a separate trustee account established for the purposes of that representation.
TYates: This matters because once you wind down and change your membership status to inactive and retired. You can no longer provide legal advice or services.
TYates: nor can you hold a trust account.
TYates: so you will need to make a list of any files where you are acting in a representative capacity, then make sure there is nothing in your existing trust account that should be in the separate Trustee account.
TYates: This helps make sure you are compliant with the rule.
TYates: Please contact, Trust, Safety Department or the Practice Advisor's office. If you have any questions about representative capacity and trustee accounts.
TYates: Consider whether you need to notify the court, legal aid.
TYates: file and server, withdrawal from representation.
TYates: file, and serve a notice of change of representation
TYates: or a notice of change of registered office.
TYates: We're not telling you anything you probably don't already know, but hopefully, this is a reminder that will help you think about how to track this particular step on each of your files as applicable.
TYates: Maybe this should be included in your new master file list.
TYates: When a lawyer ceases practice for any reason. Rule 2.3 2 of the Alberta rules of court say that they automatically cease
TYates: to be the lawyer of record in any actions before the courts.
TYates: But take stock of your matters in advance, and do this properly as much as you want to be gone quickly. Protect your reputation and your clients at this time.
TYates: Consider, now that your clients know, and you are sorting things out about where their files will go?
TYates: Are there 3rd parties, bodies, agencies, or the court that need to be notified
TYates: for litigation, advise the court and opposing counsel as necessary?
TYates: If there are any previously scheduled questioning motions or hearings need to be rescheduled. Consider carefully the timing of this notice, so as to not prejudice your client, and advise the parties in writing
TYates: file. Either a notice of change of representation, or a notice of withdrawal of lawyer of record as appropriate
TYates: for those corporate files.
TYates: seek instructions from corporate clients for whom you will no longer act for new addresses for the registered, and records offices, and determine, if you will prepare the necessary resolutions and notices, and ensure they are properly filed, or if they will do it, or perhaps their new counsel
TYates: also consider, builders liens that you may have filed
TYates: the bottom line is, you have obligations, and it's your responsibility to make sure you communicate in advance, and don't leave anything
TYates: left hanging.
TYates: Now let's turn to a discussion about closed files. First, st what do you keep on your closed file? There are only a few items that we must keep on a closed file. This includes a copy of your client's trust ledger showing a 0 balance, a copy of your clients accounts receivable ledger showing a 0 balance as well as your client's identification and verification documents for at least 6 years.
TYates: That's it.
TYates: Most of what we keep on a closed file is to help us defend against a complaint or negligence claim
TYates: when closing client files, lawyers should consider retaining the following items.
TYates: copies of notes of telephone calls, meetings, and interviews, copies of documents and correspondence prepared by the lawyer.
TYates: for which the client has paid, including draft copies of these documents.
TYates: copies of letters received by the lawyer, copies of letters and emails, instruction of instruction from the client to the lawyer.
TYates: copies of email communications, copies of offers to settle, and the client's acceptance or rejection of any offers.
TYates: copies of expert reports or other documents that provide the basis of the lawyer's opinion or recommendations.
TYates: The lawyer's opinions, personal notes and file memos.
TYates: copies of statements, of count copies, of briefs and memorandum of law.
TYates: copies of documents that may not easily be obtained from other sources after the file is closed.
TYates: and copies of documents created in preparation for a hearing or trial, such as briefs, trial books, or books of documents.
TYates: copies can include hard copies or physical copies and also electronic copies.
TYates: So when you're thinking about your closed files, you have 3 main areas to plan for.
TYates: Get a good handle on your closed files, which is the list.
TYates: You need to decide where these closed files are going to be stored.
TYates: You will need to figure out when they will be destroyed, and who will have responsibility for that
TYates: in terms of your closed file list. Many of you have a system over the years to track these files. You may have assigned box numbers, and that is how you track what is needed to be destroyed, and when
TYates: early on, as you prepare for retirement, take a look at your closed file system.
TYates: If you do not have a closed file list. This is where you start. It will be a big job. But you need to take stock and get this organized.
TYates: Now that you have the list and have a handle on what you are dealing with. Where will these files live.
TYates: If you are in a firm, this is likely the easiest option. They can probably just stay put.
TYates: Or maybe you were asking another lawyer to take them on for you. It's a big ask, but some will do that.
TYates: Maybe you're paying for physical storage of the files, or are your files? Digital
TYates: consider how they will be stored and retrieved.
TYates: regardless of how you are storing your closed files. Be clear on your plan.
TYates: You will also need to carefully consider your code obligation of confidentiality of these files.
TYates: Now, in relation to the destruction of the files.
TYates: it is so important to have a plan.
TYates: If you can start closing files. Now do so.
TYates: You will want to consider when the file should be destroyed.
TYates: We assess the likelihood of professional negligence claims as well as specific file and area of law requirements.
TYates: So some key reminders.
TYates: the law society rules do not require lawyers to keep a complete copy of their entire client file.
TYates: However, it is a recommended practice. In the event. You need to defend a professional negligence claim or respond to a complaint.
TYates: Client closed client files are usually stored for a minimum of 10 years following the end of the fiscal year in which the file was closed in consideration of sections 3 and 11 of the Limitations Act.
TYates: and then also in coordination with the trust safety rules around financial records.
TYates: It is recommended that lawyers should consider maintaining files for the duration of the 10 year outside limitation period, plus one year to serve a statement of claim plus the 3 month renewal period provided by the rules of court.
TYates: however, there will be situations where files should be maintained for longer
TYates: than 10 plus years. For example, lawyers should identify files where a client was a minor.
TYates: and the limitation period does not commence until they reach the age of majority
TYates: and files where discoverability issues may apply and consider whether they should keep the file for longer than that time period.
TYates: Also, estate planning files must be kept for 10 years after probate is granted.
TYates: Lawyers will need to consider the contents of each file to determine how long they must retain it.
TYates: On the trust side of things.
TYates: The rules of the Law Society of Alberta require trust account books and records to be retained for at least 10 years.
TYates: We've provided links to great resources around file retention and destruction, so you can feel confident about your process.
TYates: The bottom line is to have a great handle on your closed files before you go.
TYates: You know where they are going to be, and when they will be destroyed, so that you don't have to think about this once you are retired.
TYates: we always recommend that lawyers do their future selves a favor by identifying on their closed file list. When the file can be destroyed
TYates: you will know the most about your file when you close it. So this is the time to write it down so that the file doesn't need to be reviewed again.
TYates: This would also apply when you're preparing these closed files in your retirement.
TYates: Sorry. This will also apply when you are closing files, and considering this for your retirement.
TYates: there are some final trust safety steps that need to be done before you can move. To applying for inactive status.
TYates: You need to ensure that client funds are properly dispersed, and then move to close your trust account at the bank.
TYates: A 0 balance does not mean your account is closed.
TYates: You must request and provide proof of closure from the bank.
TYates: In your accounting software. You need to make sure the ending balance of each matter is 0.
TYates: You will also need to submit a final self-report and accounting upload if you are the responsible lawyer.
TYates: If you are in a law firm, limited liability partnership.
TYates: a new Rl. Should be appointed before you step down.
TYates: If a new Rl. From the firm is being appointed. The new Rl. Can review the last reconciliation and decide if they're willing to assume full responsibility. Since January of that year.
TYates: If they agree, final filings are not required at the time of stepping down.
TYates: Otherwise you will need to contact trust safety, to create a special filing requirement
TYates: and self-report, and accounting uploads to be submitted at the time of the change of Rl.
TYates: You may keep your operating or general account open to receive accounts receivable after you are inactive.
TYates: if work is complete, but the client is still owing payant. You can keep the account open to manage these outstanding amounts.
TYates: The account can be closed once all business transactions are finalized and complete.
TYates: Please remember that financial records must be maintained for 10 years, even after retirement
TYates: ensure proper storage and accessibility for compliance with the rules.
TYates: When you are ready, you will need to submit your inactive application through the lawyer portal.
TYates: It is important to provide disposal information.
TYates: Membership requires information relating to the transfer of your open, active files and confirmation that you have no remaining open, active files
TYates: on the inactive application form. You will need to list which lawyer or lawyers received which open active files, and then the lawyer who now has these open, active files will also need to confirm that they've received them in their lawyer portal.
TYates: You will also need to provide information relating to your closed files in your inactive application, such as where they are located.
TYates: If applicable, you will need to provide any information relating to original documents as well.
TYates: Please make sure that your forms and file lists are complete and attached to help with the application process.
TYates: If you are also going to elect to retire, this form is located on our website and will need to be submitted by email instead of through the lawyer portal.
TYates: On average, membership requires 30 days to process applications.
TYates: Sometimes it's more and sometimes it's less. But there is often a very high volume department, and we ask that you give yourself
TYates: that much time and set your expectations about the timing of processing these applications appropriately.
TYates: If you have a PC. And you are concerned about your end and capturing losses, speak to your accountant.
TYates: Your PC. And Llp. Will automatically terminate with a status change to inactive.
TYates: The permit will terminate 90 days from the date of the status change.
TYates: Please reach out to customer service and membership. If you have any questions or concerns about your PC. Or Llp.
TYates: They will be able to walk you through most transactions, or point you in the right direction.
TYates: We have outlined for you again here the highlights of the retirement process.
TYates: If you are having difficulties reaching a decision on the 1st step. You are not alone. It would be beneficial to engage in further reading and discussion with others, or reach out to assist at this stage, as well, to help you make peace with the decision to move forward to the next chapter.
TYates: Once you make the decision, we hope the advanced planning outlined today will help the transition proceed smoothly for both you and your clients.
TYates: We have included the links to helpful resources that have been mentioned throughout over the next 3 slides.
TYates: If you have any remaining questions, or if questions arise as you are going through the process, please reach out to trust safety or membership by phone or email.
TYates: as was mentioned earlier. If you wish to schedule a 1-on-one meeting with Practice Management Council, we have included a link that you can use to request a practice management consultation
TYates: after you submit your request. Practice management will reach out to you to schedule a teams call or a phone call, and you can also reach out to practice management by email. Or if you have any questions.