WEBVTT 2 00:00:08.320 --> 00:00:17.710 TYates: Welcome to the retirement information. Webinar. We are recording this webinar following 3 in-person sessions in Calgary, Edmonton, and Lethbridge. 3 00:00:17.900 --> 00:00:25.549 TYates: These sessions and this Webinar are a collaboration between the practice management membership and trust safety departments. 5 00:00:40.800 --> 00:00:51.649 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. 6 00:00:51.880 --> 00:01:06.690 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. 7 00:01:07.140 --> 00:01:15.279 TYates: What became known as the Province of Alberta is also the historical Northwest Metis homeland, which includes 5 territories. 8 00:01:15.400 --> 00:01:22.630 TYates: We acknowledge the many 1st nations Metis and Inuit, who have lived on and cared for these lands for generations. 9 00:01:22.840 --> 00:01:30.310 TYates: We are grateful for the traditional knowledge keepers and elders who are still with us today, and those who have gone before us. 10 00:01:30.440 --> 00:01:38.470 TYates: We make this acknowledgment as an act of reconciliation and gratitude to those whose territory we reside on, or are visiting 11 00:01:44.020 --> 00:01:52.670 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. 12 00:01:53.100 --> 00:01:59.920 TYates: We will strive to speak to as many scenarios as we can, based on different practice areas and circumstances. 13 00:02:00.030 --> 00:02:04.170 TYates: Some information will apply to you, and some likely won't. 14 00:02:04.900 --> 00:02:15.260 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. 15 00:02:15.720 --> 00:02:23.800 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. 16 00:02:25.510 --> 00:02:37.989 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. 17 00:02:38.740 --> 00:02:45.830 TYates: It is our intention that this web webinar will provide you with a better sense of the order of operations and timing required. 18 00:02:46.540 --> 00:02:52.580 TYates: None of these tasks are difficult, but they do require time and attention. 19 00:02:52.830 --> 00:02:59.970 TYates: We hope that advanced planning will help alleviate challenges and provide some peace of mind. As you move forward. 20 00:03:05.170 --> 00:03:10.830 TYates: We are going to start off with a bit about what some might call the soft stuff. 21 00:03:10.990 --> 00:03:20.289 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. 22 00:03:20.950 --> 00:03:29.010 TYates: You've got personal and financial considerations, and then you need to figure out who you're going to talk to about each. 23 00:03:29.600 --> 00:03:42.640 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 24 00:03:43.190 --> 00:03:48.370 TYates: for personal health and well-being, either yours or maybe a family member's. 25 00:03:49.230 --> 00:03:52.809 TYates: Maybe it's what you have planned from day one. 26 00:03:53.450 --> 00:03:56.649 TYates: It could be tied to changes in the practice of law 27 00:03:56.820 --> 00:04:01.559 TYates: or increased use of technology in offices and the courts. 28 00:04:02.530 --> 00:04:04.829 TYates: or just because you need a change. 29 00:04:06.530 --> 00:04:13.549 TYates: It's likely a combination. In any case, the goal is to help you exit practice on your terms. 30 00:04:14.750 --> 00:04:18.850 TYates: It is also likely you will need to consider your financial situation. 31 00:04:19.079 --> 00:04:20.940 TYates: Can you afford to retire? 32 00:04:21.140 --> 00:04:23.470 TYates: What will you do after you retire? 33 00:04:23.670 --> 00:04:29.659 TYates: Do you want to relax and travel, or do you hope to consult, coach, teach, write. 34 00:04:29.830 --> 00:04:32.700 TYates: or expand into mediation and arbitration. 35 00:04:32.960 --> 00:04:36.490 TYates: start to consider what you want to do, and why 36 00:04:36.870 --> 00:04:39.949 TYates: do you need to take any courses or further training 37 00:04:40.630 --> 00:04:46.149 TYates: this matters because it may be tied to the membership status you carry with the Law society. 38 00:04:46.680 --> 00:04:53.319 TYates: If you are going to provide legal services or give legal advice, you will need to keep your active status 39 00:04:53.790 --> 00:05:01.980 TYates: in our experience. Working with lawyers. As the big day approaches, some may start to get cold feet. It's the unknown, possibly. 40 00:05:02.090 --> 00:05:10.989 TYates: but often the anxiousness comes from realizing that they maybe haven't given themselves enough time to do everything that winding up requires. 41 00:05:12.220 --> 00:05:18.610 TYates: Usually retirement meets or exceeds expectations, but some may want to return. 42 00:05:18.830 --> 00:05:23.009 TYates: That means going from inactive or retired status back to active. 43 00:05:23.300 --> 00:05:29.600 TYates: This will entail a reinstatement process. It will take fees and may take some time. 44 00:05:30.140 --> 00:05:37.669 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. 45 00:05:38.640 --> 00:05:43.739 TYates: Also consider when and how to talk to your firm, your partners, or your employer. 46 00:05:44.500 --> 00:05:52.019 TYates: Then line up conversations with your financial team, maybe a business valuator, and maybe your own lawyer. 47 00:05:52.440 --> 00:06:01.430 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. 48 00:06:02.310 --> 00:06:04.700 TYates: If you are retiring from a partnership 49 00:06:04.940 --> 00:06:14.680 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. 50 00:06:15.080 --> 00:06:19.789 TYates: and get professional advice on the tax and financial ramifications of exit. 51 00:06:20.700 --> 00:06:27.820 TYates: You may also need professional advice and time to manage your professional corporation and limited liability partnerships. 52 00:06:28.410 --> 00:06:36.220 TYates: If you are in-house, you might have stock options or pension assets to consider. What do you need to manage for that. 53 00:06:36.360 --> 00:06:38.239 TYates: Are there any trigger dates? 54 00:06:39.080 --> 00:06:48.889 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 55 00:06:49.060 --> 00:06:57.360 TYates: your own idea around its value may be subjective, or you might do certain things to make it more attractive to a successor. 56 00:06:57.690 --> 00:07:05.840 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. 57 00:07:06.810 --> 00:07:16.759 TYates: There are many things that we will cover today that will help in this regard, including cleaning up, clearing out, organizing, possibly modernizing. 58 00:07:17.770 --> 00:07:33.490 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. 59 00:07:33.910 --> 00:07:41.299 TYates: You'll have conversations with the Trust Safety Department. If you have a trust account or other financial obligations for your firm. 60 00:07:42.320 --> 00:07:56.010 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. 61 00:07:56.110 --> 00:08:00.720 TYates: To that end you can request. A practice management, consultation 62 00:08:01.310 --> 00:08:10.039 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. 63 00:08:10.870 --> 00:08:19.709 TYates: You can also contact the practice advisors. They can provide valuable insight and guidance on any ethical issues you may encounter. 64 00:08:21.010 --> 00:08:30.839 TYates: Please also remember that assist provides free and confidential counseling to Alberta, lawyers, articling students, law students, and members of their families. 65 00:08:31.070 --> 00:08:40.429 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. 66 00:08:45.650 --> 00:08:50.919 TYates: Let's talk a little more about additional considerations that go into this decision. 67 00:08:51.430 --> 00:08:54.709 TYates: such as, do you have a succession plan. 68 00:08:55.160 --> 00:08:59.220 TYates: Is there someone in your firm that could possibly take over your files. 69 00:08:59.560 --> 00:09:02.260 TYates: or maybe someone outside the firm? 70 00:09:02.800 --> 00:09:11.880 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. 71 00:09:12.310 --> 00:09:17.629 TYates: This will provide comfort to your client as well as you. Transition to retirement. 72 00:09:18.130 --> 00:09:20.310 TYates: If you are selling your practice. 73 00:09:20.500 --> 00:09:27.389 TYates: the agreement will likely confirm that it is the client's option to choose what happens to their file. 74 00:09:27.520 --> 00:09:34.620 TYates: and probably will address potential conflicts of interest and arrangements for fees and accounts receivable. 85 00:10:20.950 --> 00:10:29.629 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. 86 00:10:31.160 --> 00:10:35.270 TYates: Are you in a firm and the designated responsible lawyer. 87 00:10:35.460 --> 00:10:42.429 TYates: This would be a good time to consider when someone else in the firm should apply to take over as the responsible lawyer. 88 00:10:42.720 --> 00:10:47.650 TYates: It often takes trust safety around 3 weeks to process these applications. 89 00:10:49.010 --> 00:10:52.239 TYates: And of course you will be thinking about your team. 90 00:10:52.670 --> 00:10:56.960 TYates: They are important to you. They may have been with you for years 91 00:10:57.110 --> 00:10:59.630 TYates: and have their own needs to address. 92 00:11:00.290 --> 00:11:09.170 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 93 00:11:10.070 --> 00:11:11.360 TYates: that said. 94 00:11:11.720 --> 00:11:24.230 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. 95 00:11:25.160 --> 00:11:31.159 TYates: you will have to continue to exercise supervision and properly delegate matters. During this time 96 00:11:32.150 --> 00:11:37.330 TYates: you will need to think about notice or compensation in lieu. 97 00:11:37.710 --> 00:11:42.010 TYates: You will need to check statutory notice requirements. 98 00:11:42.660 --> 00:11:46.630 TYates: You may want to review terms of any employment contracts. 99 00:11:47.210 --> 00:11:51.049 TYates: You may have to manage employment employee benefit plans. 100 00:11:52.300 --> 00:11:57.459 TYates: and you will need to look to have records of employment, and T. 4 s. Prepared. 101 00:11:57.870 --> 00:12:00.790 TYates: and make sure that key remittances 102 00:12:01.190 --> 00:12:03.490 TYates: have been made and are up to date. 103 00:12:05.840 --> 00:12:12.540 TYates: If you have articling students and you go inactive and retired. 104 00:12:12.670 --> 00:12:15.790 TYates: you won't be able to continue on as principal. 105 00:12:15.980 --> 00:12:26.929 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 106 00:12:28.800 --> 00:12:32.629 TYates: in terms of financial records and technology. 107 00:12:33.140 --> 00:12:38.260 TYates: Think about what you will do with the data like what is in your accounting software. 108 00:12:38.760 --> 00:12:40.790 TYates: you might be on a subscription. 109 00:12:40.910 --> 00:12:43.569 TYates: So what happens when that runs out? 110 00:12:44.180 --> 00:12:48.340 TYates: You will need to carefully review the terms of service. 111 00:12:49.740 --> 00:12:55.050 TYates: You will have to think about the potential of downloading and storing the data. 112 00:12:58.720 --> 00:13:04.120 TYates: There are several different options, including external hard drives 113 00:13:04.440 --> 00:13:09.489 TYates: and looking at redundancy, maybe cloud-based storage. 114 00:13:10.360 --> 00:13:15.400 TYates: In any event, it must be secure, confidential, and accessible. 115 00:13:16.540 --> 00:13:24.730 TYates: There are other some big thing. There are other big things to manage as well your premises, office, equipment. 116 00:13:25.170 --> 00:13:29.900 TYates: maybe other kinds of subscriptions, and possibly social media. 117 00:13:31.500 --> 00:13:36.370 TYates: You may be working around rent and lease agreements. 118 00:13:37.090 --> 00:13:40.699 TYates: and that might drive your date of retirement. 119 00:13:41.980 --> 00:13:46.719 TYates: Also, you will need to think about office furniture and equipment. 120 00:13:47.210 --> 00:13:52.210 TYates: which may be returned, maybe sold, maybe donated. 121 00:13:54.040 --> 00:14:06.890 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. 122 00:14:07.200 --> 00:14:11.690 TYates: you do not want to inadvertently breach client confidentiality. 123 00:14:15.790 --> 00:14:21.780 TYates: You may also need to notify vendors and suppliers possibly cancel utilities. 124 00:14:24.250 --> 00:14:34.000 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. 125 00:14:43.100 --> 00:14:50.410 TYates: There are a number of membership status options you will want to consider when you are planning for your retirement. 126 00:14:51.560 --> 00:14:58.930 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. 127 00:14:59.770 --> 00:15:05.270 TYates: The active, indemnified status is the status you likely currently have. 128 00:15:06.250 --> 00:15:11.590 TYates: You have active status and are practicing law and providing legal services. 129 00:15:12.250 --> 00:15:17.639 TYates: This status has a full membership fee and requires a lea indemnity. 130 00:15:19.720 --> 00:15:29.680 TYates: The active, non-practicing status is where you would maintain active status, but not be practicing law or providing legal services. 131 00:15:29.990 --> 00:15:38.210 TYates: One of the benefits of this status is that it has an expedited reinstatement process and no reinstatement fee. 132 00:15:41.400 --> 00:15:49.320 TYates: One of the benefits of this status is that it has an expedited reinstatement process and no reinstatement fee. 133 00:15:50.190 --> 00:15:54.489 TYates: You are also able to keep your PC. With this status. 134 00:15:55.370 --> 00:16:02.980 TYates: although there is no physical form to fill out for this status. You would need to submit your application through the lawyer portal. 135 00:16:03.990 --> 00:16:12.239 TYates: The membership fee for this status is one half of the full membership fee, because you are not practicing 136 00:16:12.380 --> 00:16:15.529 TYates: the Aaliyah indemnity is not required. 137 00:16:16.910 --> 00:16:19.090 TYates: This status is a good 138 00:16:19.630 --> 00:16:29.889 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. 139 00:16:33.240 --> 00:16:39.019 TYates: Active part-time status is where you are still in private practice. 140 00:16:39.580 --> 00:16:46.270 TYates: but only practicing on a part-time basis. You're providing legal services to the public. 141 00:16:46.750 --> 00:16:50.939 TYates: A full alia. Indemnity is required for this status. 142 00:16:53.520 --> 00:16:59.119 TYates: The part-time active practicing membership fee is one half of the full fee. 143 00:16:59.740 --> 00:17:04.839 TYates: Again, there is no physical form available, and you would need to submit 144 00:17:05.130 --> 00:17:10.380 TYates: your application for active part-time status through the lawyer portal 145 00:17:11.800 --> 00:17:27.530 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. 146 00:17:30.180 --> 00:17:45.190 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. 147 00:17:46.730 --> 00:17:49.949 TYates: The Aaliyah indemnity is not required. 148 00:17:50.540 --> 00:17:59.149 TYates: and the pro bono membership fee is currently sitting at $252 annually. But this is subject to change. 149 00:18:00.580 --> 00:18:07.570 TYates: You can find further information on alternative legal service providers on our website. 150 00:18:09.640 --> 00:18:19.809 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. 151 00:18:21.310 --> 00:18:27.019 TYates: There is no physical form for this status, and you would submit the application through the lawyer portal. 152 00:18:28.040 --> 00:18:33.740 TYates: The inactive membership fee is also currently set at $252. 153 00:18:34.540 --> 00:18:37.420 TYates: No indemnity is required. 154 00:18:40.230 --> 00:18:45.420 TYates: The retired status requires eligibility. 155 00:18:45.650 --> 00:18:54.980 TYates: So, to be eligible for the retired status, you must be 70 years old, and have practiced in Alberta for 25 years. 156 00:19:01.200 --> 00:19:05.340 TYates: What can you do with an inactive retired status. 157 00:19:05.780 --> 00:19:09.610 TYates: You cannot provide legal services or advice. 158 00:19:10.030 --> 00:19:17.550 TYates: but you can continue to notarize and commission documents, and also act as mediator or arbitrator. 159 00:19:19.760 --> 00:19:23.350 TYates: Please note that in terms of determining timing 160 00:19:23.610 --> 00:19:32.390 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. 161 00:19:32.800 --> 00:19:41.270 TYates: you will continue to be covered for any claims that arise from work you did while you had Alia Coverage. 162 00:19:43.320 --> 00:19:47.320 TYates: Another note is that membership fees 163 00:19:47.520 --> 00:19:52.469 TYates: are prorated, and you may receive a portion refunded. 164 00:19:53.070 --> 00:19:57.620 TYates: If you retire in the middle of the period that you have paid for 165 00:19:59.190 --> 00:20:03.090 TYates: an additional note about changing to an inactive status. 166 00:20:03.210 --> 00:20:30.219 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. 167 00:20:38.770 --> 00:20:41.210 TYates: So, choosing an effective date. 168 00:20:41.750 --> 00:20:52.139 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. 169 00:20:52.570 --> 00:20:55.779 TYates: The best way to do this is actually set your date. 170 00:20:55.970 --> 00:21:04.490 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. 171 00:21:05.100 --> 00:21:12.290 TYates: depending on your circumstances, there may be many steps to your process, so you will want to give yourself enough time. 172 00:21:12.870 --> 00:21:21.779 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. 173 00:21:22.100 --> 00:21:31.199 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. 174 00:21:32.080 --> 00:21:35.149 TYates: So why does this exercise matter so much? 175 00:21:35.540 --> 00:21:40.709 TYates: You will not hit a target if you don't 1st identify what target you want to hit. 176 00:21:40.990 --> 00:21:46.780 TYates: It has to be clear and precise, and from there you can start to take steps 177 00:21:47.140 --> 00:21:56.270 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. 178 00:21:56.710 --> 00:22:01.160 TYates: The retirement guide link is provided at the end of this Powerpoint. 179 00:22:02.950 --> 00:22:14.720 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. 180 00:22:15.920 --> 00:22:21.389 TYates: You might look at this and still wonder, how do folks actually pick a date? 181 00:22:21.500 --> 00:22:23.339 TYates: So let's talk this through. 182 00:22:23.880 --> 00:22:30.510 TYates: Maybe, as we mentioned before, you will align it with the cycle of fees at the Law Society. 183 00:22:30.790 --> 00:22:36.619 TYates: Many members want to retire before they pay their membership fees, which are due on March 15, th 184 00:22:37.630 --> 00:22:44.580 TYates: the Alia fee deadlines at the end of June, and the end of December also makes sense. 185 00:22:44.900 --> 00:22:48.049 TYates: Consider if you have any surcharges as well. 186 00:22:48.940 --> 00:22:51.180 TYates: and if you have a PC. 187 00:22:51.330 --> 00:22:54.299 TYates: That fee payment is a year-end due date. 188 00:22:54.420 --> 00:23:00.579 TYates: So many want to wind up on a calendar year end. Think about what will work best for you. 189 00:23:01.290 --> 00:23:05.049 TYates: Do you need to involve your accountant in this type of decision? 190 00:23:07.720 --> 00:23:17.989 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. 191 00:23:18.630 --> 00:23:22.849 TYates: You can't choose this date in a vacuum without guard for the other players. 192 00:23:23.370 --> 00:23:29.640 TYates: You need to also review contractual obligations you have, and whether you need to meet notice requirements. 193 00:23:30.700 --> 00:23:40.289 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. 194 00:23:41.810 --> 00:23:47.120 TYates: You will need to consider your practice areas and how long a typical file takes 196 00:23:54.780 --> 00:23:59.389 TYates: court work and transactional work require the same thoughtfulness. 197 00:23:59.580 --> 00:24:03.280 TYates: What is new? What is on the go? What is almost done? 198 00:24:04.530 --> 00:24:08.660 TYates: Perhaps there will be someone with whom you work in your firm or partnership. 199 00:24:08.980 --> 00:24:12.670 TYates: who you will transition some of these files to 200 00:24:13.970 --> 00:24:16.270 TYates: while there are still some steps here. 201 00:24:16.560 --> 00:24:18.880 TYates: This is certainly an easier option. 202 00:24:19.700 --> 00:24:23.349 TYates: If you are on your own, it's a bit more complicated. 203 00:24:23.510 --> 00:24:29.580 TYates: It may be tough to turn away work from loyal clients, but you will have to make this call at some point. 204 00:24:31.260 --> 00:24:35.450 TYates: Departing during a newly opened file is unfair to the client. 205 00:24:35.750 --> 00:24:42.130 TYates: Therefore it's really important to decide when you start to decline new work. 206 00:24:45.750 --> 00:24:53.979 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. 207 00:24:54.230 --> 00:24:59.099 TYates: Fewer clients just naturally gives you more time to do all the tasks that are before you. 208 00:24:59.610 --> 00:25:07.220 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. 209 00:25:11.970 --> 00:25:19.750 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. 210 00:25:20.080 --> 00:25:22.740 TYates: This is kind of an ideal situation. 211 00:25:24.040 --> 00:25:32.070 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. 212 00:25:32.660 --> 00:25:34.900 TYates: Do you keep client originals? 213 00:25:35.140 --> 00:25:42.750 TYates: We'll discuss this further later. But if you do have original documents, you will need to attend to these as well. 214 00:25:43.400 --> 00:25:49.760 TYates: Our point is to just help you focus on all the key considerations to help you 215 00:25:49.950 --> 00:25:53.519 TYates: determine the best date to close up shop 216 00:26:00.810 --> 00:26:13.719 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. 217 00:26:16.750 --> 00:26:29.699 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. 218 00:26:30.210 --> 00:26:33.950 TYates: You should also check outstanding accounts receivable. 219 00:26:34.150 --> 00:26:41.630 TYates: The goal is to either collect these amounts, or, if collection isn't feasible, write them off to keep your books clean. 220 00:26:42.850 --> 00:26:47.900 TYates: You should also return client funds, including undispersable funds. 221 00:26:48.890 --> 00:26:55.819 TYates: resolving undispersable funds, should be one of the 1st things you consider. Once you make the decision to retire. 222 00:26:56.400 --> 00:27:04.540 TYates: In fact, this is something that should be done regularly, even outside of retirement, planning what are undispersable funds. 223 00:27:04.910 --> 00:27:10.200 TYates: These are funds that have been sitting in a client ledger for over 2 years with no activity. 224 00:27:10.670 --> 00:27:17.090 TYates: Your 1st step in dealing with undispersable funds should always be to try to return them to the client. 225 00:27:18.390 --> 00:27:26.599 TYates: If you can't locate the client. After reasonable efforts, the rules allow firms to remit undispersable funds to the Law Society. 226 00:27:26.810 --> 00:27:36.940 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. 227 00:27:37.780 --> 00:27:46.699 TYates: So what qualifies as reasonable efforts you must attempt to contact the client at least 3 times using different methods. 228 00:27:47.010 --> 00:27:56.119 TYates: For example, if mailing a check doesn't work, try emailing them, calling them, or even doing a Google or Linkedin search. 229 00:27:56.730 --> 00:28:00.849 TYates: simply sending a check to the last known address is not enough. 230 00:28:02.820 --> 00:28:07.110 TYates: What if the client refuses to deposit the check that you've sent? 231 00:28:07.560 --> 00:28:16.199 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 232 00:28:16.340 --> 00:28:18.220 TYates: or electronic transfer. 233 00:28:18.410 --> 00:28:23.640 TYates: But remember for you to do this, you will always have to retain their instructions. 234 00:28:24.230 --> 00:28:26.800 TYates: If they still refuse to do so. 235 00:28:27.240 --> 00:28:34.660 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. 236 00:28:35.590 --> 00:28:47.649 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 237 00:28:50.820 --> 00:29:00.829 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. 238 00:29:01.430 --> 00:29:06.250 TYates: The link to the form is available at in the Powerpoint. 239 00:29:09.300 --> 00:29:13.589 TYates: Once the Law Society reviews, receives. 240 00:29:13.940 --> 00:29:14.929 TYates: Pardon me. 241 00:29:19.270 --> 00:29:24.270 TYates: the trust safety team will receive and review the request 242 00:29:24.400 --> 00:29:27.100 TYates: and either approve it or reject it. 243 00:29:30.890 --> 00:29:37.379 TYates: There are strict review requirements, especially for undispersable amounts over $50. 244 00:29:38.430 --> 00:29:50.360 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. 245 00:29:50.840 --> 00:29:53.419 TYates: screenshots of search attempts. 246 00:29:54.840 --> 00:29:59.400 TYates: If your request lacks sufficient documentation, it will be returned 247 00:30:01.880 --> 00:30:15.109 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. 248 00:30:15.280 --> 00:30:19.949 TYates: However, the cost should be proportionate to the amount held in trust. 249 00:30:20.400 --> 00:30:32.470 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. 250 00:30:32.750 --> 00:30:35.150 TYates: So if you're planning to retire 251 00:30:35.730 --> 00:30:41.869 TYates: and you have undispersables, you will need to start looking into these funds as soon as possible. 252 00:30:42.650 --> 00:30:51.679 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. 253 00:31:00.390 --> 00:31:07.630 TYates: Now we are going to look at taking a true inventory of your open and active files. 254 00:31:08.030 --> 00:31:15.879 TYates: This means figure out which files are still actually on the go and how you are going to handle them. 255 00:31:16.480 --> 00:31:34.469 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. 256 00:31:34.590 --> 00:31:36.980 TYates: So what is a master file list? 257 00:31:37.170 --> 00:31:54.560 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. 258 00:31:54.730 --> 00:31:58.720 TYates: A master file list gives you all of your files at a glance. 259 00:31:59.050 --> 00:32:07.619 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. 260 00:32:08.170 --> 00:32:15.410 TYates: Someone else could pick up your master file list and see the overview. What is on your plate. At a glance. 261 00:32:15.900 --> 00:32:28.799 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. 262 00:32:29.660 --> 00:32:37.149 TYates: I open mine 1st thing each day update it as necessary, and review it each night to see what's coming 263 00:32:37.530 --> 00:32:48.969 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. 264 00:32:49.680 --> 00:32:57.349 TYates: I suspect, after all your years in practice. You might also have a version of this tool, your own file tracker. 265 00:32:58.500 --> 00:33:05.509 TYates: This very basic tool is going to really help you set up for success as you prepare for retirement. 266 00:33:06.960 --> 00:33:11.749 TYates: This is the point where you assess each file in preparation for next steps. 267 00:33:12.210 --> 00:33:23.040 TYates: we would suggest that your master file list would include the next steps, key dates that are coming. 268 00:33:23.790 --> 00:33:27.640 TYates: the money you have in trust, or the status of billing and collecting. 269 00:33:28.140 --> 00:33:32.229 TYates: and then also the client's choice about what should be done with the file. 270 00:33:32.780 --> 00:33:37.450 TYates: including relating to the client instructions and status of the file. 271 00:33:38.500 --> 00:33:42.630 TYates: This is kind of the minimum of what we would suggest. 272 00:33:43.440 --> 00:33:49.359 TYates: Consider that you must contact each and every client about your upcoming retirement and transition. 273 00:33:49.480 --> 00:33:53.270 TYates: and you will want to track these communications. 277 00:34:21.620 --> 00:34:29.809 TYates: you will feel confident, knowing key information is in one place, the status of each individual file and the monitoring of steps. 278 00:34:30.630 --> 00:34:40.070 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. 279 00:34:40.260 --> 00:34:55.220 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. 280 00:34:56.449 --> 00:35:05.880 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. 281 00:35:06.420 --> 00:35:14.879 TYates: Whatever you do early on, get a good handle on your open files, and create a mechanism to track their status. 282 00:35:24.050 --> 00:35:28.950 TYates: Notifying your clients is an important step of the retirement process. 283 00:35:30.360 --> 00:35:33.980 TYates: You have to notify your clients and not just verbally. 284 00:35:34.440 --> 00:35:44.119 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 285 00:35:45.010 --> 00:35:49.830 TYates: inform them in writing that it is their choice. What happens with their file? 286 00:35:50.460 --> 00:35:59.599 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. 287 00:35:59.940 --> 00:36:07.420 TYates: or they may choose to have someone else. Maybe someone you refer them to to continue to represent them. 288 00:36:08.170 --> 00:36:13.560 TYates: or they may choose to have another lawyer or firm represent them. 289 00:36:14.040 --> 00:36:18.380 TYates: and they could also choose to pick up their file. 290 00:36:19.760 --> 00:36:28.140 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. 291 00:36:28.840 --> 00:36:36.010 TYates: If they have funds in trust, you will need their written authorization to trust to transfer any trust funds. 292 00:36:38.640 --> 00:36:46.020 TYates: Please remember that legal aid clients will have a different process. Legal aid certificates cannot be transferred to another lawyer. 293 00:36:46.280 --> 00:36:54.130 TYates: You should notify the appropriate legal aid office of the files that are affected, your reason for withdrawing and send a final bill. 294 00:36:55.260 --> 00:36:57.410 TYates: You will need to notify your client 295 00:36:57.520 --> 00:37:02.670 TYates: to contact legal aid, to seek a new lawyer and a new certificate. 296 00:37:04.730 --> 00:37:10.710 TYates: If there are imminent dates on matters. Address next steps with the client and the client's new lawyer. 297 00:37:11.280 --> 00:37:15.399 TYates: You might need instructions to get adjournments or extensions. 298 00:37:15.970 --> 00:37:21.069 TYates: You may also need to arrange to get off the record after consulting with the client. 299 00:37:23.620 --> 00:37:27.870 TYates: This is a good time to work to close the files that you can 300 00:37:28.600 --> 00:37:31.890 TYates: prepare and send out your final statements of account. 301 00:37:34.240 --> 00:37:37.170 TYates: If you are working on a contingency fee basis. 302 00:37:37.330 --> 00:37:39.840 TYates: look to the contingency fee agreement 303 00:37:40.700 --> 00:37:45.489 TYates: for the amount you will receive if you withdraw before a matter is complete. 304 00:37:46.440 --> 00:37:48.830 TYates: If the agreement doesn't address this. 305 00:37:49.300 --> 00:37:54.650 TYates: then you will need to reach an agreement on fees with your new client and their new lawyer. 306 00:37:55.930 --> 00:37:56.780 TYates: Sorry 307 00:37:56.930 --> 00:38:04.620 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. 308 00:38:09.860 --> 00:38:14.859 TYates: Be sure to bill out any files while you still have active status 309 00:38:15.570 --> 00:38:19.590 TYates: you can collect while you are inactive or retired. 310 00:38:19.700 --> 00:38:23.180 TYates: using the general account for these collections. 311 00:38:30.220 --> 00:38:34.160 TYates: Now we are going to look at file, transfer and other matters. 312 00:38:34.830 --> 00:38:40.669 TYates: The bottom line is you need to get each file ready to hand over to whomever will carry it. 313 00:38:41.390 --> 00:38:45.479 TYates: Memo these files so that each file can speak for itself. 314 00:38:46.390 --> 00:38:53.710 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. 315 00:38:54.330 --> 00:38:58.769 TYates: This is good for your client, and also for the for the new lawyer. 316 00:39:00.200 --> 00:39:10.899 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 317 00:39:14.260 --> 00:39:19.259 TYates: so that you can either fulfill them, be relieved of them. 318 00:39:19.630 --> 00:39:22.460 TYates: possibly have them transferred to another lawyer. 319 00:39:23.320 --> 00:39:31.220 TYates: and you can indicate, if you need to possibly file a change of address. Notice at the Land Titles Office. 320 00:39:32.090 --> 00:39:37.620 TYates: Maybe you should be adding these steps, undertakings. 321 00:39:38.600 --> 00:39:41.910 TYates: and trust conditions to your master. File list as well. 322 00:39:42.310 --> 00:39:45.319 TYates: just to keep your sight on them. 323 00:39:50.100 --> 00:39:56.530 TYates: If the your client instructs that the file will be transferred out, let them 324 00:39:56.900 --> 00:39:59.750 TYates: and their new lawyer, no one writing 325 00:40:00.430 --> 00:40:03.290 TYates: how, when, and where they can pick up their file. 326 00:40:03.910 --> 00:40:06.790 TYates: any limitations or other important dates. 327 00:40:07.180 --> 00:40:10.980 TYates: and any immediate steps they need to take on the file. 328 00:40:14.220 --> 00:40:19.820 TYates: Think about whether and how much of a client's file you wish to copy before releasing it. 329 00:40:20.870 --> 00:40:24.429 TYates: You cannot charge your client for making your copy. 330 00:40:25.880 --> 00:40:30.380 TYates: If they do not retrieve their file or give you instructions. 331 00:40:32.422 --> 00:40:39.310 TYates: Including the contact information of their new lawyer or the custodian who is responsible for holding holding their file. 332 00:40:39.840 --> 00:40:43.149 TYates: You will need to contact. Sorry I'm going to go back. 333 00:40:48.960 --> 00:41:03.950 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. 334 00:41:04.630 --> 00:41:14.360 TYates: Please contact the Practice Advisor's office. If you have any questions on how to manage these more difficult situations 335 00:41:16.810 --> 00:41:30.379 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. 336 00:41:31.200 --> 00:41:32.710 TYates: What should you do? 337 00:41:33.450 --> 00:41:38.370 TYates: Try to contact your clients and return the originals to them? 338 00:41:39.030 --> 00:41:43.219 TYates: If you can do that, that is fantastic. 339 00:41:43.520 --> 00:41:47.060 TYates: and have them sign an acknowledgement of receipt. 340 00:41:47.220 --> 00:41:54.730 TYates: and provide them with written confirmation, that they have the original, and that you have only kept a scanned copy 341 00:41:55.930 --> 00:42:00.949 TYates: if you are not able to return original documents. 342 00:42:01.280 --> 00:42:04.119 TYates: try to transfer them to another lawyer. 343 00:42:04.750 --> 00:42:12.970 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. 344 00:42:13.330 --> 00:42:18.629 TYates: You will be responsible for keeping these original wills in your possession. 345 00:42:18.750 --> 00:42:22.899 TYates: You will need to keep them safe, confidential, and secure. 346 00:42:23.470 --> 00:42:31.550 TYates: You should prepare a list of all of the original wills or estate planning documents you continue to have in your possession. 347 00:42:33.240 --> 00:42:40.290 TYates: You will also need to take stock of whether you have agreed to be executor or trustee for any of your clients. 348 00:42:41.220 --> 00:42:44.429 TYates: If you no longer want to act in that capacity. 349 00:42:44.800 --> 00:42:50.439 TYates: Ask the testator to revise their will or add a codicil appointing someone else. 350 00:42:51.550 --> 00:42:55.639 TYates: If the testator can't be located, you should get legal advice. 351 00:42:57.010 --> 00:43:03.070 TYates: Maybe you will be advised to attach a renunciation to the will if you are still holding the original. 352 00:43:04.040 --> 00:43:12.850 TYates: Also a reminder of Rule 119.4 4, where a lawyer is acting in a representative capacity. 353 00:43:15.800 --> 00:43:24.980 TYates: basically, money received while acting in a representative capacity and not directly related to the provision of legal services 354 00:43:25.110 --> 00:43:32.090 TYates: has to go into a separate trustee account established for the purposes of that representation. 355 00:43:33.400 --> 00:43:44.419 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. 356 00:43:45.110 --> 00:43:47.200 TYates: nor can you hold a trust account. 357 00:43:48.300 --> 00:44:00.830 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. 358 00:44:01.240 --> 00:44:04.790 TYates: This helps make sure you are compliant with the rule. 359 00:44:06.830 --> 00:44:17.360 TYates: Please contact, Trust, Safety Department or the Practice Advisor's office. If you have any questions about representative capacity and trustee accounts. 360 00:44:28.750 --> 00:44:34.279 TYates: Consider whether you need to notify the court, legal aid. 361 00:44:34.890 --> 00:44:38.120 TYates: file and server, withdrawal from representation. 362 00:44:38.780 --> 00:44:41.969 TYates: file, and serve a notice of change of representation 363 00:44:42.880 --> 00:44:45.970 TYates: or a notice of change of registered office. 364 00:44:51.430 --> 00:45:04.749 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. 365 00:45:05.000 --> 00:45:09.509 TYates: Maybe this should be included in your new master file list. 366 00:45:10.200 --> 00:45:18.560 TYates: When a lawyer ceases practice for any reason. Rule 2.3 2 of the Alberta rules of court say that they automatically cease 367 00:45:19.010 --> 00:45:22.850 TYates: to be the lawyer of record in any actions before the courts. 368 00:45:24.520 --> 00:45:34.860 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. 369 00:45:35.700 --> 00:45:41.639 TYates: Consider, now that your clients know, and you are sorting things out about where their files will go? 370 00:45:41.800 --> 00:45:46.890 TYates: Are there 3rd parties, bodies, agencies, or the court that need to be notified 371 00:45:47.940 --> 00:45:53.280 TYates: for litigation, advise the court and opposing counsel as necessary? 372 00:45:53.900 --> 00:46:06.650 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 373 00:46:07.420 --> 00:46:14.389 TYates: file. Either a notice of change of representation, or a notice of withdrawal of lawyer of record as appropriate 374 00:46:15.680 --> 00:46:17.489 TYates: for those corporate files. 375 00:46:17.850 --> 00:46:35.540 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 376 00:46:36.290 --> 00:46:39.640 TYates: also consider, builders liens that you may have filed 377 00:46:40.210 --> 00:46:49.050 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 378 00:46:49.390 --> 00:46:50.760 TYates: left hanging. 379 00:47:00.140 --> 00:47:23.599 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. 380 00:47:23.760 --> 00:47:24.680 TYates: That's it. 381 00:47:25.010 --> 00:47:31.440 TYates: Most of what we keep on a closed file is to help us defend against a complaint or negligence claim 382 00:47:31.820 --> 00:47:37.100 TYates: when closing client files, lawyers should consider retaining the following items. 383 00:47:38.640 --> 00:47:46.100 TYates: copies of notes of telephone calls, meetings, and interviews, copies of documents and correspondence prepared by the lawyer. 384 00:47:46.320 --> 00:47:50.660 TYates: for which the client has paid, including draft copies of these documents. 385 00:47:51.050 --> 00:47:58.499 TYates: copies of letters received by the lawyer, copies of letters and emails, instruction of instruction from the client to the lawyer. 386 00:47:59.080 --> 00:48:07.240 TYates: copies of email communications, copies of offers to settle, and the client's acceptance or rejection of any offers. 387 00:48:08.350 --> 00:48:14.730 TYates: copies of expert reports or other documents that provide the basis of the lawyer's opinion or recommendations. 388 00:48:15.190 --> 00:48:18.710 TYates: The lawyer's opinions, personal notes and file memos. 389 00:48:19.000 --> 00:48:23.549 TYates: copies of statements, of count copies, of briefs and memorandum of law. 390 00:48:24.130 --> 00:48:30.179 TYates: copies of documents that may not easily be obtained from other sources after the file is closed. 391 00:48:31.660 --> 00:48:38.990 TYates: and copies of documents created in preparation for a hearing or trial, such as briefs, trial books, or books of documents. 392 00:48:40.140 --> 00:48:45.480 TYates: copies can include hard copies or physical copies and also electronic copies. 393 00:48:46.360 --> 00:48:51.520 TYates: So when you're thinking about your closed files, you have 3 main areas to plan for. 394 00:48:52.230 --> 00:48:56.950 TYates: Get a good handle on your closed files, which is the list. 395 00:48:58.080 --> 00:49:01.980 TYates: You need to decide where these closed files are going to be stored. 396 00:49:03.550 --> 00:49:09.240 TYates: You will need to figure out when they will be destroyed, and who will have responsibility for that 397 00:49:10.810 --> 00:49:22.510 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 398 00:49:22.830 --> 00:49:28.760 TYates: early on, as you prepare for retirement, take a look at your closed file system. 399 00:49:29.240 --> 00:49:38.849 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. 400 00:49:41.400 --> 00:49:47.340 TYates: Now that you have the list and have a handle on what you are dealing with. Where will these files live. 401 00:49:47.610 --> 00:49:53.810 TYates: If you are in a firm, this is likely the easiest option. They can probably just stay put. 402 00:49:54.140 --> 00:50:00.740 TYates: Or maybe you were asking another lawyer to take them on for you. It's a big ask, but some will do that. 403 00:50:01.430 --> 00:50:07.949 TYates: Maybe you're paying for physical storage of the files, or are your files? Digital 404 00:50:09.330 --> 00:50:13.510 TYates: consider how they will be stored and retrieved. 405 00:50:15.460 --> 00:50:20.610 TYates: regardless of how you are storing your closed files. Be clear on your plan. 406 00:50:21.100 --> 00:50:28.659 TYates: You will also need to carefully consider your code obligation of confidentiality of these files. 407 00:50:31.740 --> 00:50:35.789 TYates: Now, in relation to the destruction of the files. 408 00:50:36.080 --> 00:50:39.090 TYates: it is so important to have a plan. 409 00:50:41.650 --> 00:50:45.910 TYates: If you can start closing files. Now do so. 410 00:50:46.660 --> 00:50:51.209 TYates: You will want to consider when the file should be destroyed. 411 00:50:51.930 --> 00:50:59.490 TYates: We assess the likelihood of professional negligence claims as well as specific file and area of law requirements. 412 00:50:59.990 --> 00:51:01.870 TYates: So some key reminders. 413 00:51:02.310 --> 00:51:08.949 TYates: the law society rules do not require lawyers to keep a complete copy of their entire client file. 414 00:51:09.540 --> 00:51:18.420 TYates: However, it is a recommended practice. In the event. You need to defend a professional negligence claim or respond to a complaint. 415 00:51:21.470 --> 00:51:36.530 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. 416 00:51:36.790 --> 00:51:43.280 TYates: and then also in coordination with the trust safety rules around financial records. 417 00:51:44.840 --> 00:51:59.649 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. 418 00:52:00.390 --> 00:52:06.660 TYates: however, there will be situations where files should be maintained for longer 419 00:52:06.800 --> 00:52:14.810 TYates: than 10 plus years. For example, lawyers should identify files where a client was a minor. 420 00:52:14.920 --> 00:52:19.859 TYates: and the limitation period does not commence until they reach the age of majority 421 00:52:20.200 --> 00:52:28.650 TYates: and files where discoverability issues may apply and consider whether they should keep the file for longer than that time period. 422 00:52:28.810 --> 00:52:35.009 TYates: Also, estate planning files must be kept for 10 years after probate is granted. 423 00:52:35.320 --> 00:52:41.400 TYates: Lawyers will need to consider the contents of each file to determine how long they must retain it. 424 00:52:45.380 --> 00:52:47.319 TYates: On the trust side of things. 425 00:52:47.490 --> 00:52:56.210 TYates: The rules of the Law Society of Alberta require trust account books and records to be retained for at least 10 years. 426 00:53:02.350 --> 00:53:11.009 TYates: We've provided links to great resources around file retention and destruction, so you can feel confident about your process. 427 00:53:15.510 --> 00:53:20.940 TYates: The bottom line is to have a great handle on your closed files before you go. 428 00:53:21.130 --> 00:53:28.519 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. 429 00:53:28.960 --> 00:53:38.840 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 430 00:53:39.130 --> 00:53:47.430 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. 431 00:53:47.840 --> 00:53:53.409 TYates: This would also apply when you're preparing these closed files in your retirement. 432 00:53:57.140 --> 00:54:05.279 TYates: Sorry. This will also apply when you are closing files, and considering this for your retirement. 433 00:54:14.040 --> 00:54:20.310 TYates: there are some final trust safety steps that need to be done before you can move. To applying for inactive status. 434 00:54:21.420 --> 00:54:28.240 TYates: You need to ensure that client funds are properly dispersed, and then move to close your trust account at the bank. 435 00:54:28.860 --> 00:54:33.649 TYates: A 0 balance does not mean your account is closed. 436 00:54:33.900 --> 00:54:39.249 TYates: You must request and provide proof of closure from the bank. 437 00:54:40.130 --> 00:54:46.310 TYates: In your accounting software. You need to make sure the ending balance of each matter is 0. 438 00:54:48.350 --> 00:54:56.159 TYates: You will also need to submit a final self-report and accounting upload if you are the responsible lawyer. 439 00:54:57.050 --> 00:55:01.519 TYates: If you are in a law firm, limited liability partnership. 440 00:55:01.880 --> 00:55:06.040 TYates: a new Rl. Should be appointed before you step down. 441 00:55:06.450 --> 00:55:19.489 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. 442 00:55:20.010 --> 00:55:25.390 TYates: If they agree, final filings are not required at the time of stepping down. 443 00:55:25.870 --> 00:55:32.320 TYates: Otherwise you will need to contact trust safety, to create a special filing requirement 444 00:55:32.640 --> 00:55:39.519 TYates: and self-report, and accounting uploads to be submitted at the time of the change of Rl. 445 00:55:42.020 --> 00:55:50.469 TYates: You may keep your operating or general account open to receive accounts receivable after you are inactive. 446 00:55:51.170 --> 00:55:59.130 TYates: if work is complete, but the client is still owing payant. You can keep the account open to manage these outstanding amounts. 447 00:55:59.350 --> 00:56:04.810 TYates: The account can be closed once all business transactions are finalized and complete. 448 00:56:06.870 --> 00:56:14.050 TYates: Please remember that financial records must be maintained for 10 years, even after retirement 449 00:56:14.190 --> 00:56:18.889 TYates: ensure proper storage and accessibility for compliance with the rules. 450 00:56:27.490 --> 00:56:33.119 TYates: When you are ready, you will need to submit your inactive application through the lawyer portal. 451 00:56:33.800 --> 00:56:37.549 TYates: It is important to provide disposal information. 452 00:56:37.900 --> 00:56:48.279 TYates: Membership requires information relating to the transfer of your open, active files and confirmation that you have no remaining open, active files 453 00:56:48.590 --> 00:57:06.460 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. 454 00:57:07.950 --> 00:57:17.150 TYates: You will also need to provide information relating to your closed files in your inactive application, such as where they are located. 455 00:57:18.520 --> 00:57:25.420 TYates: If applicable, you will need to provide any information relating to original documents as well. 456 00:57:26.390 --> 00:57:34.700 TYates: Please make sure that your forms and file lists are complete and attached to help with the application process. 457 00:57:37.570 --> 00:57:50.479 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. 458 00:57:52.010 --> 00:57:58.770 TYates: On average, membership requires 30 days to process applications. 459 00:57:59.050 --> 00:58:09.390 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 460 00:58:09.590 --> 00:58:17.109 TYates: that much time and set your expectations about the timing of processing these applications appropriately. 461 00:58:21.830 --> 00:58:28.539 TYates: If you have a PC. And you are concerned about your end and capturing losses, speak to your accountant. 462 00:58:29.720 --> 00:58:35.399 TYates: Your PC. And Llp. Will automatically terminate with a status change to inactive. 463 00:58:35.660 --> 00:58:40.180 TYates: The permit will terminate 90 days from the date of the status change. 464 00:58:40.890 --> 00:58:49.039 TYates: Please reach out to customer service and membership. If you have any questions or concerns about your PC. Or Llp. 465 00:58:49.150 --> 00:58:54.530 TYates: They will be able to walk you through most transactions, or point you in the right direction. 466 00:59:05.960 --> 00:59:11.350 TYates: We have outlined for you again here the highlights of the retirement process. 467 00:59:12.220 --> 00:59:29.729 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. 468 00:59:30.200 --> 00:59:39.490 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. 472 01:00:02.710 --> 01:00:09.580 TYates: We have included the links to helpful resources that have been mentioned throughout over the next 3 slides. 473 01:00:23.450 --> 01:00:34.889 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. 474 01:00:35.990 --> 01:00:48.259 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 475 01:00:48.700 --> 01:01:01.750 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.