Question 1

What are the benefits of conservation easements?

Accepted Answer

Conservation easements allow people to protect the land they love. They are the number one tool available for protecting privately owned land. All conservation easements must provide public benefits, such as water quality, farm and ranch land preservation, scenic views, wildlife habitat, outdoor recreation, education, and historic preservation.

Question 2

How does a conservation easement restrict land use?

Accepted Answer

That depends on what you’re trying to protect. If you’re placing land under easement, you can work with your land trust to decide on terms that are right for the land and right for you.

For example, if it’s important to you to be able to build a home on the land or to subdivide your property, you may be able to reserve those rights -- as long as you’re still protecting important conservation values (such as productive farmland or wildlife habitat). You can use an easement
to protect your whole property or part of it.

While every easement is unique, there are a few general rules. Farming and ranching are usually permitted. Development is almost always limited. Surface mining is almost always off-limits. While some easements require public access, many do not.

Question 3

Can a conservation easement reduce my taxes?

Accepted Answer

A conservation easement donation can result in significant tax benefits, if it meets the requirements of federal law. It may lower your federal income tax, because you can claim the value of the easement as a tax-deductible charitable donation. It may also lower your state income tax and property taxes, as well as estate taxes. Every situation is unique. SCLT does not offer financial or tax advice. Please consult your financial planner.

Question 4

Can a conservation easement help with estate planning?

Accepted Answer

Yes! A conservation easement can reduce estate taxes by lowering the land’s market value. This tool ensures the land remains protected from development, enabling heirs to inherit it without needing to sell, and allows landowners to leave a lasting conservation legacy.

Question 5

Are conservation easements permanent?

Accepted Answer

Yes, in most cases, conservation easements "run with the land," meaning they apply to the property regardless of ownership changes. Only permanent conservation easements qualify for income and estate tax benefits.

Question 6

What is the role of the land trust?

Accepted Answer

The land trust is responsible for ensuring the easement's restrictions are upheld. This involves regular monitoring of the property, usually once a year, and working with both current and future landowners to ensure activities align with the easement. If necessary, the land trust can take legal action to enforce the easement.

Question 7

Do I need to make a stewardship contribution?

Accepted Answer

When a land trust accepts a conservation easement, they assume significant stewardship responsibilities, which come with costs. Land trusts typically ask easement donors to contribute to a stewardship fund, when possible. This contribution is often outweighed by the tax incentives for donating the easement.

CONSERVATION EASEMENT FAQs

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