Land Protection and Conservation Easements...

What is a Conservation Easement?

A legal agreement between a landowner and a land trust that permanently protects open space by limiting the amount and type of development that can take place, but continues to leave the land in private ownership. A conservation easement can also be negotiated between a landowner and a government agency.

When a landowner donates or sells a conservation easement to a land trust, he can continue to live on or work the land - in accordance with the easement's provisions - and can sell the land or pass it on to heirs. Donating the easement can result in reduced income and estate taxes.

How can I protect my beautiful open space land from future development?

By working with a nonprofit land trust, such as the Conservation Trust for Florida, you can decide the best conservation tool to protect your land. You can select from a number of tools, including outright donation of your property, donation or sale of a conservation easement that permanently restricts development, bargain sale of your property, and several other variations. You should always have legal advice before embarking on such a decision.

Are there tax benefits associated with land protection?

Yes, there may well be income, estate and property tax benefits for donating your land, donating a conservation easement, or selling the property as a "bargain sale" at below market value. The amount and type of tax benefits depends on a variety of factors, including the legal tool you've used to protect your land, the value of the donation, your income level and the total amount of your estate. Again, you should consult with a financial advisor and/or an attorney to fully understand the tax implications.

Why should I grant a conservation easement to a land trust?

People execute conservation easements because they love their open space land, and want to protect it from inappropriate development while retaining their private ownership. Granting an easement to a conservation organization that qualifies under the Internal Revenue Code as a "public charity"--such as the Conservation Trust for Florida--can yield income and estate tax savings while ensuring that the land will remain as permanent open space.

Are conservation easements popular?

Very popular. In the decade between 1988 and 1998, the amount of land protected by local and regional land trusts by using easements increased nearly four-fold to 1.4 million acres. Landowners have found that conservation easements can be flexible tools, and yet provide a permanent guarantee that the land won't ever be developed.

How can a conservation easement be tailored to my needs and desires?

An easement restricts development to the degree that is necessary to protect the significant values of that particular property. Sometimes this totally prohibits construction, and sometimes it doesn't. Landowners and land trusts, working together, can write conservation easements that both reflect both the landowner's desires and the need to protect conservation values. Even the most restrictive easements typically permit landowners to continue such traditional uses of the land as farming and ranching.

First, explore with CTF the conservation values you want to protect on the land. Discuss what you want to accomplish, and what development rights you may want to retain. For example, you may already have one home on your property and want to preserve the right to build another home; this would be specifically written into an easement agreement. Always consult with other family members regarding an easement, and remember that you should consult with your own attorney or financial advisor regarding such a substantial decision.

Most easements "run with the land," binding the original owner and all subsequent owners to the easement's restrictions. Only gifts of perpetual easements can quality for income and estate tax benefits. The easement is recorded at the county or town records office so that all future owners and lenders will learn about the restrictions when they obtain title reports. Thus, protection lasts forever.

The land trust is responsible for enforcing the restrictions that the easement document spells out. Therefore, the land trust monitors the property on a regular basis--typically once a year--to determine that the property remains in the condition prescribed by the easement document. The land trust maintains written records of these monitoring visits, which also provide the landowner a chance to keep in touch with the land trust. Many land trusts establish endowments to provide for long-term stewardship of the easements they hold.

Land Trusts...

I first heard about land trusts just a few years ago. Are they new?

Not at all. A very few land trusts have already celebrated their centennials, but most are much younger. In 1950, for example, just 53 land trusts operated in 26 states. Today, more than 1,200 land trusts operate across the country, serving every state in the nation.

What has contributed to the huge growth in the number of land trusts?

People are tremendously concerned about the irreversible loss of open space in their own communities. They see subdivisions supplanting the open spaces where they once walked and hiked, and they want to know how they can gain the power to save the green spaces that make their communities unique. So they turn to land trusts.

Just what does a land trust do?

Local and regional land trusts, organized as charitable organizations under federal tax laws, are directly involved in conserving land for its natural, recreational, scenic, historical and productive values. Land trusts can purchase land for permanent protection, or they may use one of several other methods: accept donations of land or the funds to purchase land; through a bequest; or accept the donation of a conservation easement, which permanently limits the type and scope of development that can take place on the land. In some instances, land trusts also purchase conservation easements.

Are land trusts government agencies?

No, they are independent, nonprofit organizations that work with landowners who are interested in protecting open space. But land trusts can work cooperatively with government agencies by acquiring or managing land, researching open space needs and priorities, or assisting in the development of open space plans.

So, what are the advantages of working with a land trust?

Land trusts are very closely tied to the communities in which they operate. Moreover, land trusts' nonprofit tax status brings them a variety of tax benefits. Donations of land, conservation easements or money may qualify you for income, estate, or gift tax savings. Moreover, because they are private organizations, land trusts can be more flexible and creative than public agencies --and can act more quickly--in saving land.

How can I help in achieving CTF's goal of land conservation?

Joining the Conservation Trust for Florida is the first step. Donations also help. Most of our work is accomplished entirely by volunteers; if you have the time and interest there are many ways that you can help; no experience (but a good heart!) is necessary. Finally, if you have land that you would like to protect, consider one of several options to leave a permanent legacy to your love of that place.