Conservation Easement
One of the ways to protect your land is through conservation easements. These are essentially, a voluntary legal agreement made between a property owner and a conservation organization or government agency that permanently restricts certain land uses and activities. Easements are practical and flexible tools that allow landowners to continue to own and use their land while preserving its conservation values.
Conservation easements are permanent and remain with the land even after it has been sold or willed to heirs. Easements preserve the unique conservation values of the land that provide public benefit, such as scenic vistas, wildlife habitat, watershed protection and recreational opportunities, and can allow for public access such as hiking, riding, or other activities if the landowner agrees.
When you donate a conservation easement, you restrict uses of the land pursuant to your wishes. For example, you might restrict the right to build additional structures while retaining the right to grow crops. Future owners also will be bound by the easement’s terms. The organization holding the easement is responsible for making sure that existing and future landowners comply with the terms of the conservation easement.
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 to just a portion of the property and does not 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. For Federal Income Tax purposes, the amount of the donation is the difference between the land’s value with the easement and its value without the easement. Lacawac suggests you contact your legal and financial advisors while making this important decision.
Perhaps most important, a conservation easement can be essential 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 life or by will, it can make a critical difference in the heirs’ ability to keep the land intact.
Conservation easements are permanent and remain with the land even after it has been sold or willed to heirs. Easements preserve the unique conservation values of the land that provide public benefit, such as scenic vistas, wildlife habitat, watershed protection and recreational opportunities, and can allow for public access such as hiking, riding, or other activities if the landowner agrees.
When you donate a conservation easement, you restrict uses of the land pursuant to your wishes. For example, you might restrict the right to build additional structures while retaining the right to grow crops. Future owners also will be bound by the easement’s terms. The organization holding the easement is responsible for making sure that existing and future landowners comply with the terms of the conservation easement.
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 to just a portion of the property and does not 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. For Federal Income Tax purposes, the amount of the donation is the difference between the land’s value with the easement and its value without the easement. Lacawac suggests you contact your legal and financial advisors while making this important decision.
Perhaps most important, a conservation easement can be essential 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 life or by will, it can make a critical difference in the heirs’ ability to keep the land intact.
Conservation Easements 101
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Find a Land Trust Near You
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Typical Landowner Conservation Easement Information
Title Search
A title report is required for all conservation easements. It provides a legal property description and reveals liens, mortgages, leases, and rights-of-way, so we’re aware of (& can correct) anything that could override the easement.
Survey
A survey is needed to delineate property boundaries and/or special use areas. An existing survey may serve, or you may need a new one.
Appraisal
Landowners wishing to apply for tax benefits of conservation easements must obtain an appraisal from a qualified appraiser to determine the easement value. We recommend that you consult with a tax attorney and/or accountant.
Financial Advisor Consultation
Donating an easement can reduce your property, income, and estate taxes at local, state, and federal levels. We recommend consulting with a tax attorney, accountant, or other financial advisor about your financial resources, expected tax burden, estate plans, and easement-related expenses and tax benefits.
Attorney Consultation
A conservation easement is a legal document that dictates the use of your land forever and states how communication, violations, and legal action shall be handled. It is important that you understand and agree fully with the language. Advice of an attorney looking out for your interests is a wise investment.
Closing & Recordation
Conservation easement closings are like other real estate transactions. An attorney or notary presides as you and the land trust sign the easement documents. The easement is recorded in the county land records.
What is conservation easement stewardship?
Ensuring that your easement continues to protect your property as it was intended — forever.
How is it conducted?
Lacawac staff will visit your property annually and note changes, such as timber harvests. We will contact you, and every following landowner, before each visit to discuss any easement questions or upcoming plans, such as sale of property or construction of new structures allowed by the easement. If we see an activity that violates the conservation easement, we will use our staff and, if needed, legal resources to address it. If we notice an invasive plant or other management issue, we can recommend treatment before it threatens the health of your property’s woods, fields, or streams.
How much does stewardship cost Lacawac Sanctuary?
Stewardship usually costs Lacawac around $250-$500 per year, depending on the property size and location and the easement complexity. These costs include staff time, supplies, and mileage.
Our policy is to put a minimum of $5,000 per easement into our Land Stewardship Endowment Fund within a year of the closing. At a 4% interest rate, $200 is generated for that property’s stewardship each year, ensuring that we can steward the property forever.
How much should you contribute?
There is no easy answer to this question, but think about your financial resources, the importance of your property’s protection, and any income or tax relief the conservation easement may generate. We typically request a one-time contribution to cover our basic annual stewardship costs. The cost for a typical easement is between $250 and $500 per acre.
Regarding Dwellings/Residential Buildings:
Conservation easements limit the number, location and type of dwellings and other buildings and also limit or prohibit subdivision. Flexible in design, they may allow future construction or subdivision provided these do not impair the conservation values the easement protects. These “reserved rights” are negotiated between the landowner and Lacawac before a conservation easement project begins.
Title Search
A title report is required for all conservation easements. It provides a legal property description and reveals liens, mortgages, leases, and rights-of-way, so we’re aware of (& can correct) anything that could override the easement.
Survey
A survey is needed to delineate property boundaries and/or special use areas. An existing survey may serve, or you may need a new one.
Appraisal
Landowners wishing to apply for tax benefits of conservation easements must obtain an appraisal from a qualified appraiser to determine the easement value. We recommend that you consult with a tax attorney and/or accountant.
Financial Advisor Consultation
Donating an easement can reduce your property, income, and estate taxes at local, state, and federal levels. We recommend consulting with a tax attorney, accountant, or other financial advisor about your financial resources, expected tax burden, estate plans, and easement-related expenses and tax benefits.
Attorney Consultation
A conservation easement is a legal document that dictates the use of your land forever and states how communication, violations, and legal action shall be handled. It is important that you understand and agree fully with the language. Advice of an attorney looking out for your interests is a wise investment.
Closing & Recordation
Conservation easement closings are like other real estate transactions. An attorney or notary presides as you and the land trust sign the easement documents. The easement is recorded in the county land records.
What is conservation easement stewardship?
Ensuring that your easement continues to protect your property as it was intended — forever.
How is it conducted?
Lacawac staff will visit your property annually and note changes, such as timber harvests. We will contact you, and every following landowner, before each visit to discuss any easement questions or upcoming plans, such as sale of property or construction of new structures allowed by the easement. If we see an activity that violates the conservation easement, we will use our staff and, if needed, legal resources to address it. If we notice an invasive plant or other management issue, we can recommend treatment before it threatens the health of your property’s woods, fields, or streams.
How much does stewardship cost Lacawac Sanctuary?
Stewardship usually costs Lacawac around $250-$500 per year, depending on the property size and location and the easement complexity. These costs include staff time, supplies, and mileage.
Our policy is to put a minimum of $5,000 per easement into our Land Stewardship Endowment Fund within a year of the closing. At a 4% interest rate, $200 is generated for that property’s stewardship each year, ensuring that we can steward the property forever.
How much should you contribute?
There is no easy answer to this question, but think about your financial resources, the importance of your property’s protection, and any income or tax relief the conservation easement may generate. We typically request a one-time contribution to cover our basic annual stewardship costs. The cost for a typical easement is between $250 and $500 per acre.
Regarding Dwellings/Residential Buildings:
Conservation easements limit the number, location and type of dwellings and other buildings and also limit or prohibit subdivision. Flexible in design, they may allow future construction or subdivision provided these do not impair the conservation values the easement protects. These “reserved rights” are negotiated between the landowner and Lacawac before a conservation easement project begins.
- Compatible land use and development—landowner reserves the right to construct or maintain a residence on the property and may reserve the right to construct and maintain additional residences on the property.
- Certain areas will be sited to accommodate existing and future development taking into account the entirety of the natural potential of the land as well as its scenic resources. A Minimal Protection Area (MPA) will be designated in an area to promote compatible land use and development so that it will be available for a wide variety of activities, uses, and additional improvements subject to minimal constraints necessary to achieve conservation objectives outside the MPA.
For more information on the easement process, contact Lacawac at:
Craig Lukatch, President
570-689-9494
[email protected]
Craig Lukatch, President
570-689-9494
[email protected]
