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| WHAT IS A CONSERVATION EASEMENT? |
| A conservation easement is one of the most commonly used techniques to voluntarily protect land and natural resources. It is a legal agreement between the property owner and an easement "holder" -- a certified nonprofit organization or government agency --that restricts the type and amount of development that may take place on that land. The easement is recorded as part of the property deed, holding all future landowners accountable to those restrictions. The purpose of an easement is to conserve some aspect of the land; the terms of the easement are negotiable between the landowner and easement holder. |
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| WHY SHOULD I DONATE A CONSERVATION EASEMENT? |
| An easement will protect the land you love forever, preserving family farms, wildlife habitat, streams, open space, woodlands and scenic vistas. Your donation of an easement can motivate your neighbors to do the same, ultimately leading to the protection of larger landscapes in your community. |
| Protection of farmland, timberland, and open space, particularly where local planning identifies such activities as valuable to the community, and where such land is under development, are typical objectives of conservation easements. In addition, protection of wetlands, floodplains, wildlife habitat, and scenic vistas are appropriate uses of easements. |
| While many people donate easements because of their love of the land and their desire to see it protected in perpetuity, there are also significant tax advantages associated with an easement donation. An easement can be a critical element of your estate planning, significantly reducing estate taxes and preventing the forced sale of your property to pay estate taxes. There are also income tax and property tax savings associated with the donation of easements. |
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| WHO SHOULD CONSIDER A CONSERVATION EASEMENT? |
| If you own land that you value for its beauty, natural resources or family heritage, and you wish to ensure that your heirs and future generations will share this legacy, you should consider a conservation easement. Farm land, timber land, open space, wetlands, floodplains and wildlife habitat all have potential as conservation easements. |
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| WHAT ARE THE FINANCIAL BENEFITS TO THE LANDOWNER? |
| Internal Revenue Code standards qualify the donation of an easement as a charitable contribution, allowing the landowner to take immediate and significant state and federal income tax deductions. In Virginia, this results in a 50% tax credit. This credit can be carried forward for five years or can be transferred to others. |
| A conservation easement allows you to direct the present and future use of your land while providing income, property and estate tax benefits. |
| A conservation easement allows you to direct the present and future use of your land while providing income, property and estate tax benefits. |
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| HOW DOES AN EASEMENT RESTRICT LAND DEVELOPMENT? |
| The extent of the restriction depends on the desires of the landowner. The landowner agrees to sell or give away certain rights that accompany land ownership, while retaining others. For example, you may give up the right to subdivide or develop the land, but retain the right to farm the property; or you may decide to give away the right to clear cut timber, but retain the right to hunt on the land. It is possible to retain the rights to limited land development -- such as residential construction -- as long as the conservation purpose of the easement is not diminished. |
| Land subject to a conservation easement may be freely sold, donated, passed on to heirs and transferred by the usual methods, while remaining subject to the restriction of the easement as originally established by the landowner. |
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| DOES A CONSERVATION EASEMENT REQUIRE PUBLIC ACCESS TO MY LAND? |
| Although easements must create a public benefit to qualify for tax deductions, this does not mean the public gains access to the land. Unless the purpose of the easement is conservation of a feature that is meaningless without public access (such as preservation of a beautiful view), no public access is required. |
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| HOW WILL MY COMMUNITY BENEFIT? |
| Land under conservation easement helps provide clean air and water, as well as habitat for wildlife. All citizens can enjoy the view of an undeveloped meadow or farmed field without leaving the road. Easements are also an effective way to protect land surrounding historic resources that are the heritage of the entire community. |
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| WHAT IF I CHOOSE TO SELL MY PROPERTY? |
| Land subject to conservation easements may be sold, donated, passed on to the heirs and transferred in every normal fashion, but it remains subject to the restrictions of the easement, which becomes part of the deed. It is even possible to retain some rights to limited development of the land, including residential construction as long as such rights do not undercut the conservation purpose of the easement and that such development right is noted in the easement document. |
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| WHO ACCEPTS CONSERVATION EASEMENTS? |
| In Virginia, easements can be donated to a number of entities, both public and private. In order to qualify for a tax deduction, easements must be donated either to a federal, state, or local government agency, or a private charitable organization that has the capacity to enforce the terms of the easement. |
| Many conservation easements are donated to the Virginia Outdoor foundation (VOF), a state agency established by the General Assembly to hold easement in public trust. In special cases, the Virginia department of Historic Resources and the National Park Service also may accept easements. Easements may also be held by certain non-profit conservation organizations, such as the Middle Peninsula Land Trust. |
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| IS THERE FUNDING AVAILABLE? |
| The Open Space Lands Preservation Trust Fund - a state fund- has a limited amount of money available to help landowners with the costs (appraisals, legal, etc.) of donating conservation easements and to purchase all or part of the value of the easements, if necessary. |
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| HOW DO I DONATE A CONSERVATION EASEMENT? |
| The first step in donating an easement is to contact the Middle Peninsula Land Trust (MPLT) for further information. MPLT has worked with several landowners and the VOF to protect land in the area through the use of conservation easements. We would be happy to meet with you and your family to discuss your land conservation options. |
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