What are the Options for my Land?
Management Options
If you are interested in implementing conservation best management practices on your land, there are a number of state and federal
programs that can provide financial resources or technical assistance. These programs are listed below, based on what you are interested
in managing.
Conservation Options for Landowners
Conservation Easement
A conservation easement is a legal agreement between a landowner and a conservation organization or government agency that
permanently limits a property's uses in order to protect the property's conservation values. When a landowner donates or
sells a conservation easement, he is permanently giving up some rights of development. These restrictions are flexible and
are written to meet the particular needs of the landowner while protecting the property's resources. For example, land
may be placed in an agricultural conservation easement, a working forest conservation easement, or a forever wild conservation easement,
etc., depending on the resources it protects.
Examples of TLC's Conservation Easements
A conservation organization leases property from a landowner for a set time period. The conservation organization has exclusive use
or access rights to the property and manages the property during the time of the lease. This allows the conservation organization the opportunity to build a relationship with
the landowner so that they can work together to attain long-term conservation goals.
Property that is considered ecologically significant is "registered" through a conservation organization. This registry involves drafting a nonbinding agreement
stating that the landowner will not develop the land, or at least certain portions of it, and will notify the conservation organization of any threat to the land
or plans to sell.
Term conservation easements are different from most conservation easements in that they are not permanent and the landowner
and conservation organization can determine the term for which it will be valid. This type of conservation easement does not provide
federal tax deductions and may not reduce your property's value for estate taxes.
Part of property / easement value is sold and part is donated. Allows property / easement to be purchased at less than fair market value. Income tax benefits.
Landowner or beneficiary places assets in an irrevocable charitable trust that allows the beneficiary and the conservation organization to benefit. The beneficiary can receive a set income from the trust for life and the conservation organization
receives the remainder of the trust after the death of the beneficiary.
Landowner donates their land to a conservation organization as specified in their will. Ownership of the land transfers to the conservation organization after the landowner's death.
Developable land is exchanged for land of comparable value that has a high conservation value. Reduces capital gains for the original owner of the
protected land.
A conservation organization pays for property over time. If the installment sale is financed by the seller, then it can lower their taxes.
A conservation organization purchases property, limits future development through restrictive easements or covenants, and leases back part or all of the property.
The conservation organization retains responsibility for the property while it is leased.
Sale price of property is maximized because the land is valued at its highest and best use.
A purchase-and-sale agreement in which the landowner gives the conservation organization, in exchange for some form of consideration, the right (but not the obligation) to buy their land within a certain period of time.
Before the option expires, the conservation organization must either exercise the right and follow through on the terms specified in the agreement or drop the option, in which case the seller is free to market and sell the property to another. This type of
agreement allows the conservation organization time to consider the merits of the project and to put together financing for the transaction. Options are typically used for fee simple purchases.
A landowner makes an outright, fee-simple donation of land to a conservation organization. Once the land is donated, the conservation organization
owns and manages the land and it is permanently protected. This option provides the landowner with income and estate tax benefits.
Used in many subdivisions, these regulate the use of property for the benefit of neighbors. They usually are enforceable only by the landowners involved and their heirs and successors. This is a tool most often used by developers.
The landowner conveys the land to the land trust, but continues to live on or use the land until his/her death. "Remainder interest" in property then reverts to land trust. Limited income tax benefits; full estate tax benefits.
The landowner agrees to grant the land trust the right to meet any bona fide offer to purchase the property.
Non-conservation land is donated to a conservation organization, who then sells the land and uses the money from the sale to purchase conservation lands.
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