Providing for Designated Attorney (and Alternate) in Estate Planning Documents
In addition to executing an agreement governing the management of your law practice upon your death, incapacity, or inability to practice law for any reason, a durable limited power of attorney, and, if you operate as an entity, any necessary consent actions, you will want to include a provision in your estate planning documents that deals with the closure and sale of your practice upon your death as your executor, trustee, or other personal representative will otherwise have authority over your assets, including your practice. Sample provisions to include in a will or revocable trust are provided below.
Sample Will Provision
I direct and authorize my Executor to act in accordance with the Agreement entered into by [Designated Attorney], [Alternate Attorney], and me on ______, 20__, as it may be updated an amended from time to time (“Agreement”), with respect to my law practice located at ______. My Executor is authorized and directed to grant the necessary authority to [Designated Attorney] (or if he/she cannot or will not act, [Alternate Attorney]) to handle the closing and sale of my law practice (including without limitation managing the transfer of client files, handling time sensitive client matters in accordance with all applicable rules and regulations, and paying any bills and collecting outstanding fees), provided that if [Designated Attorney] (or [Alternate Attorney]) wishes to purchase my practice, then my Executor shall take any steps necessary to ensure that my Estate obtain the best possible price (including without limitation engaging [Alternate Attorney](if [Designated Attorney] wishes to purchase the practice)or another attorney to assist in the sale). If such Agreement is not in effect at the time of my death (or if neither [Designated Attorney] nor [Alternate Attorney] is willing and able to serve), then I direct my Executor to enter into a similar agreement with comparable terms with another licensed Iowa attorney in good standing as soon as reasonably practicable following my death to manage the closure and sale of my practice. My Executor shall pay [Designated Attorney] (or [Alternate Attorney]) such fees from my estate assets as required pursuant to the Agreement, and such payment shall be made before any final distribution to any beneficiary hereunder.
Sample Revocable Trust Provision
Grantor directsand authorizes the Trustee to act in accordance with the Agreement entered into by [Designated Attorney], [Alternate Attorney], and Grantor on ______, 20__, as it may be updated an amended from time to time (“Agreement”), with respect to Grantor’s law practice located at ______. The Trustee is authorized and directed to grant the necessary authority to [Designated Attorney] (or if he/she cannot or will not act, [Alternate Attorney]) to handle the closing and sale of Grantor’s law practice (including without limitation managing the transfer of client files, handling time sensitive client matters in accordance with all applicable rules and regulations, and paying any bills and collecting outstanding fees), provided that if [Designated Attorney] (or [Alternate Attorney]) wishes to purchase Grantor’s practice, then the Trustee shall take any steps necessary to ensure that this Trust obtains the best possible price (including without limitation engaging [Alternate Attorney](if [Designated Attorney] wishes to purchase the practice)or another attorney to assist in the sale). If such Agreement is not in effect at the time of Grantor’s death (or if neither [Designated Attorney] nor [Alternate Attorney] is willing and able to serve), then Grantor directs the Trustee to enter into a similar agreement with comparable terms with another licensed Iowa attorney in good standing as soon as reasonably practicable following Grantor’s death to manage the closure and sale of Grantor’s practice. The Trustee shall pay [Designated Attorney] (or [Alternate Attorney]) such fees from the Trust estate assets as required pursuant to the Agreement, and such payment shall be made before any final distribution to any beneficiary hereunder.