Getting started.
Protecting your land can be deeply meaningful. It’s also a big decision. You probably have a lot of questions. For starters, you might want to check out our FAQs about conservation easements below. You may also want to learn about other conservation options.
Questions to consider.
As you think about protecting your land, it’s helpful to to have a clear sense of your needs and goals. The answers to questions like these can help determine the conservation options that will work best for you.
What is it about the land that’s important to you?
What are its special natural, agricultural, scenic or historic features?
Is it important to you to protect the whole parcel or a specific part of it?
How do you plan to use the land in the future?
Do you plan to continue owning the land?
Do you plan to continue living on the land?
Do you plan to pass the land on to someone in your family?
Do you need to sell all or part of the land?
Is it important to you to reduce your income taxes?
Are you interested in reducing potential estate taxes?
Are you interested in reducing your property taxes?
Will you owe substantial capital gains taxes if you sell the land?
Do you want to be able to construct any additional buildings on the property?
Do you want to be able to sell any building lots in the future?
Getting Advice.
We want to help answer your questions and guide you through the process of protecting your land. As you make decisions, you should also consult with your own qualified, independent legal and financial advisors. And, of course, it’s important to talk these decisions through with all family members who will be affected.
FAQs. Frequently Asked Questions.
What is a conservation easement?
The most common way to protect land is by “conservation easement.” A conservation easement is a voluntary legal agreement between a landowner and a land trust or government agency that permanently limits uses of the land in order to protect its conservation values. Landowners retain many of their rights, including the right to own and use the land, sell it and pass it on to their heirs.
What are the benefits of conservation easements?
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.
How does a conservation easement restrict use of the land?
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.
Can I sell a conservation easement?
Most conservation easements are donated. But if your land has very high conservation value, your land trust may be willing to raise funds to purchase an easement. In particular, a number of federal, state, and local programs provide funding to purchase easements on farm and ranch land.
Can a conservation easement reduce my income taxes?
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, depending on your state laws.
Can a conservation easement help with estate planning?
Yes. Often, one of the biggest advantages of a conservation easement is that it helps you pass on your land to the next generation. A conservation easement helps you plan for the future of the land, and it can significantly lower your estate taxes.
How much land is protected by conservation easements?
More every year! Conservation easements are becoming very popular, in part because of their flexibility working with landowners to achieve their goals. As of 2010, nearly 9 million acres in the United States were protected by state and local land trusts through conservation easements.
How do I put a conservation easement on my land?
Start by talking with Preserve Midway to see if we are a good fit for your project. Talk to us about the conservation values you want to protect and how you want to use the land. Be sure to talk with family members as you consider your conservation options. This is a big decision, so it’s important to consult with your attorney and financial advisors, too
Are conservation easements permanent?
In most cases, yes. Most easements “run with the land,” meaning that all not only the original owner but all owners that come after them are subject to the easement. A few conservation programs use temporary easements — but only permanent conservation easements qualify for income and estate tax benefits.
What is the role of Preserve Midway?
Preserve Midway is a resource to connect owners, govenments and land trusts together. We also work to educate the public and landowners about the positive impacts of conservation of Open Space. Preserve Midway is also regarded as the premiere source of high quality information source on preservation issues and actions in and around Midway. Preserve Midway is also a trusted and influential grass roots organization.
Do I need to make a stewardship contribution?
It depends. When a land trust agrees to hold a conservation easement, they take on significant stewardship responsibilities. Most land trusts maintain a stewardship fund to make sure they’ll be able to carry out these responsibilities. Often, land trusts ask easement donors to contribute to this fund. But, usually, the amount of the stewardship contribution is more than offset by the tax incentives for donating the easement.
Flexibility.
Landowners have found that conservation easements offer great flexibility, yet provide a permanent guarantee that the land will not be developed. For example, an easement on property containing rare wildlife habitat might prohibit any development, while one on a farm might allow continued farming and the building of additional agricultural structures. An easement may apply to only a portion of the property, and need not require public access.
A landowner may sell 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 property may or may not result in property tax savings.