INSIGHT

Succession Planning for Law Firms: Best Practices for Protecting Your Legacy 

Craig Hamm • February 26, 2026

Services: Succession Planning Industries: Professional Services

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Running a successful law firm takes years of dedication, client relationships, and strategic planning. But have you thought about what happens when you’re ready to step back—or if something unexpected occurs? Without a clear succession plan, the practice you’ve built could face serious disruption. 

Many attorneys assume succession planning is only necessary when retirement approaches. The reality is different. Whether you’re planning for retirement in a decade or preparing for unforeseen circumstances, having a succession strategy protects your clients, your staff, and the legacy you’ve worked hard to create. This article will walk you through the key steps to develop a succession plan that safeguards your firm’s future.  

Why Your Firm Needs a Succession Plan Today 

You might think you have plenty of time to plan for succession. But consider this: what would happen to your clients if you faced a sudden illness or family emergency tomorrow? Who would manage ongoing cases? How would your staff know what steps to take? 

A succession plan isn’t just about retirement. It prepares your firm for any transition—planned or unexpected. Your clients rely on you for critical legal matters. They deserve the security of knowing their cases will continue without interruption, regardless of what happens. 

Beyond client protection, succession planning adds tangible value to your firm. When you eventually sell or transfer your practice, a well-documented succession strategy demonstrates stability and continuity. This makes your firm more attractive to potential buyers or successor attorneys. 

6 Best Practices for Creating a Succession Plan for Your Law Firm 

Now that you understand why succession planning matters, the question becomes: where do you start? These seven best practices will guide you through building a plan that protects your clients, your team, and the value you’ve created.  

1. Start With Your Essential Documents 

Your succession plan begins with organization. Create a comprehensive master document that includes everything someone would need to step into your shoes. This means compiling all client information, active case details, fee agreements, and file locations in one accessible place. 

Don’t forget your digital footprint. Your firm likely uses numerous online platforms—case management software, billing systems, cloud storage, email accounts, and social media. Document all login credentials and store them securely using a password management system. If you use two-factor authentication (which you should), include instructions for accessing those backup codes. 

Financial records deserve special attention. Compile information about your business accounts, Interest on Lawyers’ Trust Accounts (IOLTA accounts), credit cards, and payment systems. Make sure at least one trusted person has authorization to access these accounts if needed. 

2. Designate a Successor Attorney 

One of your most important decisions is choosing who will take over your practice. This person needs more than legal skills—they need to understand your clients, your approach, and your values. 

Some attorneys choose to partner with another solo practitioner or small firm. This arrangement allows for a gradual transition where you can remain involved while slowly reducing your caseload. Others prefer to identify and train a junior attorney within their firm, which can take five to ten years but ensures continuity. 

Consider creating a formal agreement with your chosen successor that outlines compensation, client transition procedures, and your level of ongoing involvement. The clearer these terms are from the beginning, the smoother your eventual transition will be. 

3. Create a Client Transition Strategy 

Your clients chose you, not just your firm. Any succession plan must prioritize their needs and preferences. Give clients substantial notice—ideally three years or more—before a planned transition. This timeline allows relationships to develop naturally between clients and your successor. 

Start with a small group of clients first. This lets you test your transition process and make adjustments before rolling it out firm-wide. Stay involved during the early stages to reassure clients and address any concerns. 

Remember that you have ethical obligations to your clients during any transition. Provide them with complete case files and information they need. Make sure they understand their options and never feel abandoned during the handoff process. 

4. Address the Business Side of Succession 

Your law firm represents years of your professional life. You deserve fair compensation when you transition out. Whether you’re selling your practice, creating a partnership, or arranging an “of counsel” relationship, establish clear compensation terms upfront. 

Consider getting a professional valuation of your firm. This gives you an objective baseline for negotiations and helps ensure you receive appropriate value for what you’ve built. Factor in not just current revenue, but also client relationships, reputation, and goodwill. 

Your compensation structure might include a purchase price, ongoing consulting fees, or revenue sharing over a transition period. The right approach depends on your goals, your successor’s financial capacity, and your desired level of continued involvement. 

5. Leverage Technology for Smoother Transitions 

Modern practice management software makes succession planning significantly easier. These systems centralize client information, case details, billing records, and communications in one place. When transition time comes, your successor can access everything they need without hunting through filing cabinets or scattered spreadsheets. 

Cloud-based systems offer particular advantages. They’re accessible from anywhere, they update in real time, and they make collaboration simple during transition periods. Your successor can gradually take on cases while you remain available for questions and guidance. 

Technology also helps you track firm performance and value. Detailed analytics show revenue trends, client acquisition costs, and profitability by practice area. This data supports accurate firm valuation and helps you plan realistic compensation expectations. 

6. Don’t Wait to Start Planning 

Succession planning feels easier to postpone than to tackle. But the attorneys who wait often find themselves with limited options when retirement or unexpected circumstances arrive. The earlier you start, the more flexibility you maintain and the better your eventual outcome will be. 

You don’t need to complete your entire succession plan in one sitting. Start with the basics—document your client list, organize your passwords, and identify potential successors. Build from there gradually, refining your plan as your situation and goals evolve. 

Think of succession planning as insurance for your professional legacy. You’ve invested decades building your practice and serving your clients. A solid succession plan ensures that investment pays dividends when you’re ready to step back and that your clients receive the continued representation they deserve. 

Let BPM Guide Your Succession Strategy 

Succession planning involves complex legal, financial, and strategic considerations. You shouldn’t navigate these decisions alone. At BPM, we work with law firms to develop comprehensive succession plans that protect your legacy while maximizing the value you’ve created. 

Our team understands the unique challenges law firms face during ownership transitions. We can help you structure partnership agreements, value your practice accurately, address tax implications, and ensure compliance with professional responsibility rules. Whether you’re planning for retirement in ten years or need to act quickly due to changing circumstances, we’ll create a strategy tailored to your specific situation. To schedule a consultation and take the first step toward securing your firm’s future, contact us.