How a Conservation Easement Can Benefit You & Your Estate Plan

If your property has nature around it that you love, it makes sense to want that preserved for your family down the line. It would be a shame if someone had bought that property later and turned it into something commercial for businesses or real estate.

Luckily, you have an option to make sure your piece of property stays preserved by protecting it with a conservation easement. This article sets out to show how you can place your property into a conservation easement so that your future generations can enjoy it for many years to come.

A conservation easement is a legal agreement made voluntarily between a landowner and a land trust or government agency to protect a piece of land conservation. When the easement is made, it permanently limits the use of the land in question. A conservation easement can also be referred to as a conservation restriction or conservation agreement.

If you are a landowner wishing to protect your land for future generations, consider including a conservation easement as a part of your estate plan.

When a property has a conservation easement, the current owner is still allowed to own and use their land. They also retain the right to sell it, or pass it down to their heirs. The conservation easement, however, is permanent, so none of these actions will terminate it. The restrictions of this easement stay in place, even in the event that the land is inherited or sold. 

How Do They Work?

The landowner must first identify a land trust or government agency that handles conservation easements. This could be a local land trust that is run by a board of Trustees. Many state and government agencies also facilitate easements. Some examples include:

• Reserve programs

• State departments of fish & wildlife

• State department of forestry & fire protection

• National park service

• Native American tribes 

The landowner and the agency or recipient organization will then negotiate the terms of the conservation easement. This determines limitations on whether or not it will allow public access, the type or amount of development permitted on the property, and designated use of the property.

The landowner then sells the easement to the receiving organization or agency at the appraised value. They can also choose to donate it partially or in full.

Once the easement is finalized, it becomes a part of the property deed. The landowner continues to bear all costs related to owning and maintaining the property. The agency or organization that owns the easement monitors the property routinely to make sure that it is in compliance with the term of the easement; however, they don’t have any direct control over the activities on the land. 

How They Can Benefit Your Estate Plan

There are psychological and financial benefits associated with enveloping a conservation easement into your estate plan.

The psychological benefits come from the comfort you can give yourself knowing your beloved property will keep its integrity. One of the key objectives of an estate plan is planning out what you want your legacy to look like, and how to protect that legacy so that it stays intact, long after you’re gone.

If you have a beautiful piece of land and have a passion for nature conservancy, a conservation easement could be exactly what you were looking for. By obtaining a conservation easement as a part of your deed, you can have peace of mind that your land will never be developed against your wishes voiced in your easement process.

Financially, conservation easements also serve a more practical matter. It can be used as an estate administration tool to reduce the value of your estate. By gifting or selling a conservation easement to a land trust or other organization, the value of your land is no longer included in your estate.

For instance, let’s say you own a large plot of land valued at $1 million, and your total estate is valued at $2 million. By obtaining a conservation easement, you can cut the size of your estate in half! This is a serious benefit, because you are significantly reducing the size of your estate, and thus your tax liabilities, while preserving your land for good use.

It can also make it such that your heirs aren’t forced to sell the property so that they can come up with the money needed to pay for estate taxes. By placing a conservation easement on the property, your heirs can continue to own and operate the property to their benefit. 

Should a Conservation Easement Be a Part of Your Estate Plan?

Whether your goal is to conserve land for the love of nature, or to reduce the size of your estate for financial purposes, a conservation easement presents itself as a win-win situation. You still have full control over your own land during your lifetime, and you still get to pass it down to future generations. You can have peace of mind knowing that your cherished property has been turned into a lasting legacy and it will keep its integrity.

If you end up selling or donating a conservation easement to a land trust or government agency, be sure to update your estate plan. You’ll need to reflect the change on your property deed, and update the instructions for the way in which your property shall be inherited. We at Sivia make it easy to prepare and update your estate planning documents so that you can rest assured that your vision for your legacy will be carried out. 

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If you need any help regarding your estate or other legal matters please reach out to us directly here and schedule a call with one of our paralegals on our scheduling page here.