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Conservation Easements
What is a conservation easement?
A conservation easement is a legal agreement between a landowner and a land trust that permanently protects the scenic and natural qualities of the land while allowing the private landowner to continue to own and enjoy his or her property. The landowner retains the title to the property and continues to use it, subject to certain, specific voluntary restrictions.
Why donate an easement?
The main purpose of creating an easement is to preserve the special qualities of your property. Those who wish to be stewards of the land, those who appreciate the value of natural spaces and want to leave an enduring legacy, can donate a conservation easement knowing that it will be forever protected. Conserved land is a gift one can pass down to future generations. There are also potential state, property, income and estate tax benefits that make conservation of the land a good financial decision.
How long does a conservation easement last?
Because an easement protects the land in perpetuity, all future landowners are bound to the restrictions. The easement is created in the form of a deed. This Deed of Conservation Easement is recorded in the county land records. Because it is recorded with the property deed records, future landowners are put on notice of the land protections you have recorded.
Who owns the land?
The easement donor continues to own their property, retaining authority just as they did before the easement was recorded, subject to restrictions specified in the easement. The land can be transferred, sold, and inherited as it was before.
What is the fair market value of a conservation easement?
The difference between fair market value of the land before the easement is created (the land’s “highest and best use”) and the value of the land after the easement represents the fair market value of the conservation easement. Easement value is created most often by giving up some or all of the residential development rights associated with the land. Landowners who wish to take advantage of the tax benefits must obtain a “qualified appraisal” to determine this value. The donated fair market value of the conservation easement is generally a charitable deduction to the landowner.
How do I donate an easement?
Contact us. If you wish to donate a conservation easement, we must collect information about your property, negotiate the easement restrictions, document the condition of the property, and sign and record the deed of the conservation easement.
*What are the Tax Benefits of an Easement?
*More articles on conservation easements:
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