What is a Land Trust?
A land trust is a private, non-profit, community based organization
that is established to protect land and water resources for the benefit
of the public. Most often, the resources under the protection of a
land trust have natural, scenic, agricultural, or historic value.
A land trust aspires to conserve land by assisting with direct land
transactions and primarily accepts or purchases donations of land
or conservation easements. Some land trusts prefer not to own land,
and instead monitor development restrictions they help put into place.
Is a land trust a government agency?
A land trust is not government agency. It is an independent organization
that often works in tandem with local and state government agencies
to help preserve land and open space within their community. Land
trusts work with individual landowners who are interested in protecting
their land either via conservation easement or outright sale. They
also work with local government to research the needs and priorities
of their community when it comes to developing open space or comprehensive
plans.
Is there an advantage to working with a land trust?
Land trusts develop and operate within a community that has specific
needs and are closely tied to that community. A land trust has a non-profit
tax status that brings them many tax benefits. You may qualify for
estate, gift, or income tax savings if you donate funds, a conservation
easement, or land to a land trust. When it comes to saving land, a
land trust can also sometimes work around roadblocks faster than local,
public or state agencies since they have more flexibility.
What exactly does a land trust do?
A land trust works with local or regional jurisdictions, neighborhoods
and like-minded organizations to protect and preserve land for its
significant natural, scenic, agricultural, or historic value. Organized
under federal tax laws as a charitable organization, a land trust
can accept donations of land, funds to purchase land, a conservation
easement or a bequest.
What is a Conservation Easement?
The purpose of a conservation easement is to protect and/or preserve
some important aspect of the land identified as being of value to
the community. It is a legal agreement between a landowner and a land
trust, or government agency. A conservation easement normally permits
the continuation of the use of the land being employed by the owner
at the time the easement is donated or purchased. The landowner continues
to use and own their land and can freely sell or pass it on to their
heirs as long as it remains subject to the restrictions set forth
in the terms of the easement.
The IRS establishes standards for conservation easements. If these
standards are met, the donation of the conservation easement can qualify
as a tax-deductible charitable donation. Conservation easements that
typically qualify for the tax benefits offered by the IRS are permanent
easements donated by the landowner which conserve the natural qualities
of the land for the benefit of the public.
Why should I grant a conservation easement to a land trust?
The donation of a conservation easement to a land trust can be a key component in helping to keep land in the same family from
generation to generation. Since the development potential of the land
is diminished or removed, the conservation easement actually lowers
the market value of the property, thus lowering estate taxes.
Another reason for granting a conservation easement to a land trust
is for the satisfaction of knowing a piece of open space has been
preserved. Landowners can keep ownership of their property while protecting
it from future development. And as mentioned above, it can qualify
as a tax-deductible charitable donation.
Can a conservation easement be designed to fit my needs and desires?
Conservation easements can be designed by both the landowner and the
land trust to encompass the landowner's wishes and needs for the use
of the land. It restricts development only to the extent that is necessary
to protect and preserve the conservation quality and value of the
piece of property. Restrictive easements will usually even permit
landowners to use their land for such uses as farming and ranching.
What responsibilities does a land trust have regarding conservation
easements?
The land trust is responsible for inspecting the conservation easements
it holds on a regular basis in order to determine that the restrictions
which the easement document sets forth are enforced. Written records
are kept by the land trust of all inspections.
What, if any, tax benefits are associated with land protection?
There may be several tax benefits associated with the donation, or
sale of a conservation easement. These benefits will vary depending
upon the landowner's income level and value of their estate, the value
of the donation, and the legal means used to protect the property.
As with many other charitable donations, it is always wise to contact
an attorney or financial advisor about the tax implications of donating
a conservation easement.
