Page 43 - June2019_BarJournal

SOLO & SMALL FIRM

Regardless of the plan chosen, the firm must One begins by carefully considering and it outlines the terms of ownership transfer if one
be aware of costs of the plan, as the Department establishing your objectives. What do you practitioner divorces, retires, becomes disabled
of Labor mandates that employers provide clear want the plan to accomplish? What are or dies. Life insurance is a source of funds to
information to employees on costs and fees. your concerns for your clients? What about purchase a deceased practitioner’s interest.
As a plan sponsor, the firm is the plan your employees? This article is only a broad-brush stroke.
fiduciary and, thus, is required to make Communicating your vision with your Many considerations go into determining
decisions based on the best interests of family, any partners and key employees is the best way to protect yourself and firm for
plan participants. The right plan provider essential and can help to manage potential the present and future. Working with your
can help lessen the burden of your fiduciary conflicts that could disrupt the practice. financial professional will help alleviate the
responsibility. An Investment Policy Statement Your plan should be flexible because the burden of planning for retirement and other
— a description of the plan’s investment strategy practice could change, as could family or contingencies and give you peace of mind
— is one of the most important functions of health situations. Determine who and what which allows allow you to focus on what you
the fiduciary role. It is intended to be reviewed is important to the practice. Discuss this with do best — managing your practice.
and modified as warranted in the best interests qualified financial professionals, including
PWFCO_logo1.pdf 1 9/8/2016 4:41:05 PM
of plan participants. Therefore, keeping appropriate other legal counsel.
employees educated and providing ongoing Choose a successor wisely. You will want a Elaine M. Straub is a registered
communication is vital. successor who can run your practice with your representative of Lincoln Financial
Whether a solo practitioner or smaller firm unparalleled style and acumen. Take the steps to Advisors, a broker-dealer (member
sponsors an employee retirement plan or not, ensure a transition is smooth — for the benefit SIPC) offering investment advisory
there are other ways to capitalize on pretax of your clients and any employees or heirs. services through Sagemark
dollars allotted for executive benefits to fund It takes holistic solutions to create a solid Consulting, a division of Lincoln Financial
personal retirement. Executive benefits provide succession plan which considers all the key Advisors Corp., a registered investment advisor.
a way to reward the attorney owners and any elements, such as estate and gift taxes, transfer She has been a member since 2017. Elaine can
essential employees. Life insurance and other taxes, generation-skipping taxes and firm be reached at (216) 765-7437 or at Elaine.
benefits (annuities, disability and long-term valuation. A buy-sell agreement is essential as Straub@LFG.com.
care insurance, etc.) can be tailored for these
purposes. A discussion with your financial
advisor can help determine — based on your
goals — which plan and other benefits are most
appropriate and beneficial.
Another area of significant importance to
the solo practitioner and to the smaller firm
is succession planning. At its most basic, a
succession plan is a documented road map
for you and/or your partners, any heirs and
successors to follow in the event of death,
disability or retirement. It can also be used to
orchestrate the sale of your practice and even
help establish the value of your firm. Succession
planning may also help:
• Establish who would run the practice upon
retirement, death or divorce
• Set policies for distribution of assets and any
debt retirement APPELLATE ADVOCACY
• Encourage key employee retention
• Protect the firm should a partner decide to Chances are your opponent‘s legal team includes a
take his share and leave the practice certified appellate specialist, yours should too.
• Prevent family conflict from forcing the sale
or merger of the practice For over twenty years our firm has been assisting attorneys
• Establish a value for the firm — for potential with civil, criminal, and administrative appeals and trial court
sale or merger or upon death for estate motion practice across Ohio as well as in the federal system.
valuation Estimates available upon request.
• Pay any estate taxes without sacrificing
the firm 50 Public Square, Suite 1910, Cleveland, OH 44113
• Provide ways to take advantage of unexpected OFFICE: (216) 344-9393 E-MAIL: pwf@pwfco.com
expansion opportunities
June 2019 Cleveland Metropolitan Bar Journal | 43