What is a Conservation Easement?
What is a conservation easement?
A conservation easement (or conservation restriction) is a legal agreement between a landowner and a land trust or government agency that permanently limits the use of the land in order to protect its conservation values. It also allows you to continue to own and use the land as well as to sell it or pass it on to heirs.
When you donate a conservation easement to a land trust, you give up some of the rights associated with the land. For example, you might give up the right to build additional structures, while retaining the right to grow crops. Future owners will also be bound by the easement's terms. The land trust is responsible for making sure the easement's terms are followed.
Conservation easements offer great flexibility. An easement on property containing rare wildlife habitat might prohibit any development, for example, while one on a farm might allow continued farming and the building of additional agricultural structures. An easement may apply just to a portion of the property, and it does not necessarily require public access.
A landowner sometimes sells a conservation easement, but usually easements are donated. If the donation benefits the public by permanently protecting important conservation resources and meets other federal tax code requirements, it can qualify as a tax-deductible charitable donation. The amount of the donation is the difference between the land's value with the easement and its value without the easement. Placing an easement on your property in some cases may result in property tax savings.
Perhaps most importantly, a conservation easement can be an essential tool for passing land on to the next generation. By removing the land's development potential, the easement lowers its market value, which in turn lowers estate tax. Whether the easement is donated during one’s life or by will, it can make a critical difference in the heirs' ability to keep the land intact.
People execute a conservation easement because they love their land and and want to protect it from inappropriate development, while also maintaining 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) may yield income tax savings. Moreover, land trusts, some of which are more than 100 years old, have the expertise and experience to work with landowners and ensure that the land will remain as permanent open space.
Back to the top of page
Are conservation easements common?
Yes, and they are used throughout the country. In the five years between 2000 and 2005, the amount of land protected by local and state land trusts using easements doubled to 6.2 million acres. Landowners have found that conservation easements can be flexible tools, and yet also provide a permanent guarantee that the land will not ever be developed. Conservation easements are used to protect all types of land, including coastlines; farm and ranchland; historical or cultural landscapes; scenic views; streams and rivers; trails; wetlands; wildlife areas; and working forests.
Back to the top of page
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 conservation values of that particular property. Sometimes this totally prohibits construction, and sometimes it doesn not. Landowners and land trusts, working together, can write conservation easements that 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.
Back to the top of page
What steps 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. This must be specifically written into an easement agreement. Consulting with other family members regarding an easement is recommended, and ryou should alwaysconsult with your own attorney or financial advisor regarding such a substantial decision.
Back to the top of page
How long does a conservation easement last?
Easements bind the original owner and all subsequent owners to the easement's restrictions. Only gifts of perpetual easements can qualify for income and estate tax benefits. The easement is recorded at the county records office so that all future owners will be able to know about the easement.
Back to the top of page
What are a land trust's responsibilities regarding conservation easements?
When the land trust accepts an easement, it is accepting a long term responsiblility. 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. Most land trusts establish endowments to provide for long-term stewardship of the easements they hold.
(I’d like to insert a picture of our ORLT Protected Area, if we have one on paper.)
Back to the top of page
What are some specific examples of local Conservation Easements and the values they protect?
*Water Quality: A 267 acres conservation easement held by the Oconee River Land Trust borders over one mile of the Apalachee, prevents disturbance of the stream bank and provides a wide natural buffer which protects the river’s water quality .
*Wetlands Protection: A 60 acre ORLT easement protects a wetland along the Mulberry River by not allowing any disturbance of the wetland and its buffer area.
*Habitat Protection: A 367 acre easement donated to ORLT protects various habitat, from wetlands, river bottomland to meadow, providing a refuge for many types of native animals and plants.
*Working Farm: A 120 acre easement given to ORLT permits certain agricultural activities on half of the property,keeping the other half undisturbed, preventing erosion and sediment runoff into the nearby creek.
*Working Forest: A 40 easement along the Middle Oconee River doanted to ORLT permits carefully stewarded timber management and responsible timbering.
*Scenic View: A 277 ORLT easement maintains the rural and traditional agricultural view for the public for over one mile along a major state highway
What are the possible benefits of placing a conservation easement?
A conservation easement is a vehicle for ensuring that the landowner’s vision for his or her land is carried out. Many landowners with strong ties to or affection for their land want to make sure that their special property remains privately owned and undisturbed, a green refuge for those who come after them. This strong sense of place and responsibility leads them to place a conservation easement on their land.
There may be potential tax benefits as well. Conservation easements may qualify for a Federal charitable tax deduction, the Georgia State Conservation Tax Credit, and may reduce property taxes. In addition, there may be estate tax implications if the easement reduces the value of the property. Each easement is unique, just as each landowner’s situation is unique. Thus, landowner’s must seek competent professional advice in order to determine whether the conservation eaement qualifies and just what affect an easement might have on their financial situation.
|
