I am the senior partner in a six attorney firm in Los Angeles. I am 68 years old and thought that it was about time I begin thinking about retirement and begin discussions with my other partners. We have no partnership agreement and no plans in place to effect the transition of partners. What are some of the methods being used by law firms effect the retirement of partners?
There are almost as many approaches as there are law firms – ranging from partners that just leave and give their practices to the others partners to various methods for buying out the departing partner's interest in the partnership. In the final analysis the optimal approach is what makes everyone happy and a solution that everyone can live with. Here are a few illustrations:
Fully Funded Retirement
50 Percent Wind Down Option – Then Retirement Payments For Live
Pension For Life
Mandatory Wind Down
Five Year Retirement Benefit Payout Based On Earnings
More and more firms are avoiding payouts for life and even moving toward funded buyouts.
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John W. Olmstead, MBA, Ph.D, CMC
Posted at 08:45 PM in Partnership, Succession/Exit Strategies
Tags: Law Firm Succession and Retirement