Asked and Answered

By John W. Olmstead, MBA, Ph.D, CMC

Q. I am the sole owner of a 8 attorney practice in Houston. I am 55 years old and am beginning to think about retirement. The other attorneys are associates in the firm. What do I need to be thinking about in order that I can transition out of my practice and have money for retirement. While I have put some money in a 401k, I am not yet financially secure enough to retire.

A. You are not alone. As the baby boom generation ages - more and more attorneys are asking this question. Unless you have an appropriate Exit Planning Strategy and put in place a sound Exit Plan, it is doubtful that you will be able to cash in on the full value of the goodwill that you have created. To exit successfully you need:

John L. Nickels was raised on a dairy farm in rural Illinois, started his education in a one-room country schoolhouse at the age of four and rose to become a Justice on the Illinois Supreme Court.

Justice Nickels passed away in the company of his family on Monday after a long illness. He had served on Illinois’ highest court from December 1992 to his retirement in December 1998, earning a reputation as a quiet, private man but one who was unafraid to express his fidelity to fundamental beliefs and to call out publicly those he felt had abused their trust. Justice Nickels was 82.

"He was a gentle and most hospitable man," Illinois Supreme Court Chief Justice Thomas L. Kilbride said. "He carried a wealth of compassion and internal resolve to bring out the best in all of us -- to be respectful professionals. He was a real role model and epitomized that it was quite acceptable 'to agree to disagree.' "

Jump start your new Illinois legal career by attending this outstanding Basic Skills course that’s designed to equip you with the information you need as a new Illinois attorney, as well as help you begin to fulfill your Illinois Supreme Court Newly Admitted Attorney requirement (S. Ct. Rule 793). Our faculty – consisting of high-profile attorneys and judges – offers insights, tips, and advice on the issues you face in your practice. Topics include: common mistakes to avoid; brief-writing; setting up an IOLTA account; risk management and malpractice issues; effective legal research; negotiations; using technology in your practice; ethical risks created by modern technology; satisfying your clients; maintaining accurate records; dealing with conflicts; handling the stress of a legal career; and much more! The program closes with a discussion of topic generated by your suggestions when you register for the program.

The program takes place in Chicago on Monday, September 9^th and qualifies for 6.50 hours MCLE credit, including 6.50 hours Professional Responsibility MCLE credit (subject to approval). The program is FREE for Newly Admitted Attorney ISBA members within the first year of practice.

Click here for more information and to register.

The Illinois State Bar Association Assembly, the organization's 203-person policy making body, approved several reports during the 137th Annual Meeting in Lake Geneva, Wis.

The Assembly unanimously approved the 53-page report and recommendations of the Special Committee on the Impact of Law School Debt on the Delivery of Legal Services. The report was supported with research and testimony from statewide hearings that call for dramatic changes in the way law schools deliver education. The Assembly also moved to adopt the report as coming from ISBA and not just the special committee and sending the report to the deans of all Illinois law schools, newspapers editors and Supreme Court justices. U.S. Senator Dick Durbin (D-IL) has written to the ABA Task Force on the Future of Legal Education recommending the findings in the ISBA report.

The Assembly also approved the report and recommendations of the Special Committee on Fair and Impartial Courts.

ISBA Past President John Locallo presented the report and recommendations of the Special Committee on Collaborative Law, which opposed legislative passage of the "Uniform Collaborative Law Act" as a violation of separation of powers. The Assembly approved that report as well.

Paula H. Holderman, chief attorney development officer at Winston & Strawn, LLP, in Chicago, was sworn-in as the 137^th president of the Illinois State Bar Association on June 21 at the Annual Meeting in Lake Geneva, Wis.

During her term as president, Holderman will place special emphasis on four major projects, with an overall focus on enhancing member services and new member recruitment. She has formed a New Lawyer Task Force, to be chaired by two young lawyers, Marron Mahoney and Brian Monico, who, with a committee, will develop recommendations for the ISBA to help young lawyers succeed in the profession.

Holderman will also concentrate on member services and marketing the tangible benefits of ISBA membership. Currently, the ISBA offers 15 hours of free Continuing Legal Education (CLE) credits each year to members, as well as Fastcase (online research) and E-Clips (case digests and legal news) as essential tools of the practice. ISBA membership also provides access to affordable malpractice insurance through the ISBA Mutual Insurance Company. “We will show the legal community that ISBA membership is not only relevant but the one membership that an Illinois lawyer needs,” she stated.

ISBA Membership Dues for 2013-2014

Deadline: July 1 / Renew Online

Just a friendly reminder that the deadline to renew your dues for the 2013-2014 bar year is Monday, July 1. Renewing your dues by the deadline ensures continued service of all your benefits… benefits that help you save time, save money and reduce your stress. Here’s how:

• FREE ONLINE LEGAL RESEARCH - Value: $995/year

Replace or supplement your current legal research package with the comprehensive and user-friendly Fastcase Premium Plan. Access the free online training programs to get started. Brought to you by ISBA Mutual Insurance Company

• FREE ONLINE CLE - Value: $349/year

Meet your CLE requirement over a 2 year period for no extra cost by using the ISBA Free CLE Channel. Eligible* memberscan earn up to 15 hours MCLE per bar year through this program.

Our panel of leading appellate attorneys review Thursday's Illinois Supreme Court opinions in the civil cases Metropolitan Life Insurance Company v. Hamer, Wilkins v. Williams, VC&M Ltd. v. Andrews and Crittenden v. The Cook County Commission on Human Rights and the criminal case In re B.C.P.

CIVIL

Metropolitan Life Insurance Company v. Hamer

By Karen Kies DeGrand, Donohue Brown Mathewson & Smyth LLC

A carrot dangled by an amnesty statute for delinquent taxpayers resulted in the Department of Revenue hitting a corporate taxpayer with a rather large stick:  a penalty of 200% interest.  Accordingly to a 4-2 decision of the Illinois Supreme Court, the plain language of the Tax Delinquency Amnesty Act, 35 ILCS 745/10 (West 2004), required this result.  The Amnesty Act established a program for taxpayers owing payment for any taxable period between June 30, 1983 and July 1, 2002, to avoid interest and penalties, as well as civil or criminal prosecution, by paying “all taxes due” during a six-week period in 2003.  Taxpayers who failed to square up during the amnesty period faced a penalty of 200% interest under another statute, the Uniform Penalty and Interest Act, 35 ILCS 735/3-2(f) (West 2004).