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Land Conservation Tools

Below is a interactive flowchart to demonstrate the options you have as a landowner to protect, preserve, lease or donate your land. If you are interested in further information about these conservation tools please download the documents and contact us for detailed information.
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What are the advantages / disadvantages of conservation easements?

Advantages

  • Easements provide income tax, estate tax and gift tax benefits if the easement is donated or sold at less than market value.
  • The property owner retains ownership of the property while potentially receiving income tax, estate tax and property tax reductions.

Disadvantages

  • Easements can involve giving up some property usage rights.
  • The landowner maintains the land and is responsible for expenses, including taxes.
What are the advantages / disadvantages of Leases?

Advantages

  • The landowner can receive payments for the leased property.
  • The landowner can protect the land for a specified period without transferring the land to another entity.
  • The landowner can terminate the lease if the property is not being used as directed.

Disadvantages

  • Leases expire.
  • Unless provisions are made by the landowner, leases generally allow unrestricted and exclusive control of the land by the organization or agency leasing the property.
What are the advantages / disadvantages of Management Agreements?

Advantages

  • The landowner may be able to receive direct payments or other types of financial assistance.
  • The landowner can often use the services of the land trust, conservation organization or agency to develop a site management and maintenance plan.
  • It is easier to terminate a lease with a management agreement than with some other arrangements.
  • Payments or cost-share maybe available for management or maintenance activities.

Disadvantages

  • Management agreements expire.
What are the advantages / disadvantages of Restoration?

Advantages

  • Technical and financial assistance is available for many if not all project expenses.
  • Restored wetlands can create views and attract wildlife that boost property values and quality of life.

Disadvantages

  • Restoration without outside financial assistance can be expensive.
  • Restoration is not always entirely successful.
  • Restoration and rehabilitation of a site is generally a long-term commitment.
What are the advantages / disadvantages of Limited Development Strategies?

Advantages

  • A landowner can raise the money necessary to protect the more environmentally sensitive property.
  • A landowner can combine conservation and limited development to help meet financial needs.
  • A landowner can realize tax advantages by recording an easement over the undeveloped part of the land.

Disadvantages

  • It can be difficult to determine which areas of the property are the least sensitive.
  • Limiting land development can reduce its profitability.
  • Adjacent land use may affect the wetland area.
What are the advantages / disadvantages of Transferring Property Remainder Interests?

Advantages

  • Landowners enjoy all rights to the property during their lifetime, except those that degrade the natural resource value.
  • Landowners provide future protection of the property.
  • Donation for conservation purposes qualifies the landowner for a tax deduction, discounted in proportion to the anticipated length of time before the grantee takes over the interest.
  • Whether the land is sold or donated, dedication of the remainder interest reduces the burden of the estate taxes.

Disadvantages

  • The designation may restrict some uses of the land during the landowner’s lifetime that may degrade the natural resource value.
What are the advantages / disadvantages of Permanent Title Transfer without Compensation?

Sale Option
Landowners can choose from these four sale options:

  1. Fair market value: The landowner sells the property for its fair market value.
  2. Bargain sale: The landowner sells the property to a land trust, conservation organization or agency at a price below the fair market value. The difference between the sale price and fair market value can be characterized as a donation.
  3. nstallment sale: The landowner sells the property to a land trust or conservation organization where all or part of the consideration is deferred and paid in successive years.
  4. Right of first refusal: The landowner gives a land trust or conservation organization the option to match a purchase offer and acquire the land if another buyer approaches the landowner.

Advantages

  • Sale at full market value allows the landowner to receive full value for property.
  • Bargain sales offer a tax deduction and reduction of capital gains taxes to the landowner.
  • Installment sales can defer the actual capital gains tax until the purchase with which to pay the tax is in hand.
  • Right of first refusal can give land trusts and other conservation organizations time to acquire the funds necessary for purchasing the land.

Disadvantages

  • Most land trusts and conservation organizations have limited budgets and can rarely pay full market value for wetlands.
  • If the land value has appreciated since it was purchased, the landowner becomes liable for the income tax on the capital gain
What are the advantages / disadvantages of Title Transfer without Compensation?

Donation of Land Landowners can choose from three types of donations:

  1. Outright donation grants full title and ownership to the conservation organization, community or government agency receiving the donated property.
  2. Donation by deathtime transfers property through a will.
  3. Donation with a reserved life estate permits the landowner to use the donated property during his or her lifetime and the lifetimes of designated family members.

Advantages

  • Donation provides total protection for a wetland.
  • Landowners can receive income tax deductions and possible estate, gift and property tax breaks.
  • Land trusts and conservation organizations, which may not have the budget to buy wetlands, can fulfill their mission to protect wetlands.
  • Outright donation requires little negotiation and can be completed quickly.
  • Donation at deathtime allows the landowner and their family to retain interim control and full use of their property, while ensuring protection after the landowners’ death.
  • Donation with reserved life estate allows the landowners and their family to continue to live on the land, while ensuring it future protection.

Disadvantages

  • The landowner forfeits potential income from the sale of the land.
  • Maintenance and other associated costs taken on by the land trust or organization may be more costly than a conservation easement.
  • There is no income tax deduction for a donation by deathtime transfer.
  • The landowner is responsible for property taxes as long as they remain in possession of the land.
  • Many land trusts may not be able to accept the donation without additional funding for an endowment to support long-term management of the property. Tax relief from donation with a reserved life estate generally applies to farms and personal residences, and in some cases wetlands may not qualify.