Frequently Asked Questions
How can I protect my beautiful open space land from future development?
By working with a nonprofit land trust, you can decide the best conservation tool to use to protect your land. You can select from a number of tools, including the outright donation of your property, the donation or sale of a conservation easement that permanently restricts development, the bargain sale of your property, and several other variations. You should always have legal advice before embarking on such a decision.
What is a Conservation Easement?
A legal agreement between a landowner and a land trust that permanently protects open space by limiting the amount and type of development that can take place, but continues to leave the land in private ownership.
When a landowner donates or sells a conservation easement to a land trust, she can continue to live on or work the land - in accordance with the easement's provisions - and can sell the land or pass it on to heirs. Donating the easement can result in reduced income and estate taxes.
Are there tax benefits associated with land protection?
Yes, there may well be income, estate and property tax benefits for donating your land, donating a conservation easement, or selling the property as a "bargain sale" at below market value. The amount and type of tax benefits depends on a variety of factors, including the legal tool you've used to protect you land, the value of the donation, your income level and the total amount of your estate. Again, you should consult with a financial advisor and/or an attorney to fully understand the tax implications.
Why should I grant a conservation easement to a land trust?
People utilize a conservation easement because they love their open space land, and want to protect their land from inappropriate development while keeping their private ownership of the property. Granting an easement to a conservation organization that qualifies under the Internal Revenue Code as a "public charity" - which nearly all land trusts do - can yield income and estate tax savings. Moreover, land trusts have the expertise and experience to work with landowners and ensure that the land will remain as permanent open space.
Are conservation easements popular?
Very popular. In the decade between 1988 and 1998, the amount of land protected by local and regional land trusts by using easements increased nearly four-fold to 1.4 million acres. Landowners have found that conservation easements can be flexible tools, and yet provide a permanent guarantee that the land won't ever be developed.
How can a conservation easement be tailored to my needs and desires?
An easement restricts development to the degree that is necessary to protect the significant values of that particular property. Sometimes this totally prohibits construction, and sometimes it doesn't. Landowners and land trusts, working together, can write conservation easements that both reflect both the landowner's desires and the need to protect conservation values. Even the most restrictive easements typically permit landowners to continue such traditional uses of the land as farming and ranching.
What step do I take to write a conservation easement?
First, contact a land trust in your community to become acquainted with the organization and the services they can provide. Explore with them the conservation values you want to protect on the land. Discuss with the land trust what you want to accomplish, and what development rights you may want to retain. For example, you may already have one home on your property and want to preserve the right to build another home. That is one provision that must be specifically written into an easement agreement. Always consult with other family members regarding an easement, and remember that you should consult with your own attorney or financial advisor regarding such a substantial decision.
How long does a conservation easement last?
Most easements "run with the land," binding the original owner and all subsequent owners to the easement's restrictions. Only gifts of perpetual easements can quality for income and estate tax benefits. The easement is recorded at the county or town records office so that all future owners and lenders will learn about the restrictions when they obtain title reports.
What are a land trust's responsibilities regarding conservation easements?
The land trust is responsible for enforcing the restrictions that the easement document spells out. Therefore, the land trust monitors the property on a regular basis -- typically once a year - to determine that the property remains in the condition prescribed by the easement document. The land trust maintains written records of these monitoring visits, which also provide the landowner a chance to keep in touch with the land trust. Many land trusts establish endowments to provide for long-term stewardship of the easements they hold.
