Landowner Resources
Conservation Easements: Frequently Asked Questions
The Sportsman Access Program (SAP) connects hunters to local conservation by providing access to our privately managed lands. This first-of-its-kind lottery permit system allows members a chance to hunt on large block for a week at a time. All funds generated by the SAP support our local conservation efforts.
What is a conservation easement?
A conservation easement is a voluntary, legal agreement that permanently guarantees the long-term protection of the land and its natural resources. This is done by extinguishing the property’s development rights and authorizing a conservation group, such as Three Rivers Land Trust, to enforce the terms. Enforcement ensures the easement terms are followed, regardless of who owns the land in the future. The easement “carries with the land.” The land can be sold, leased, left to heirs, or transferred, but the easement will always remain. Conservation easements are a great option for landowners who want to keep their land undeveloped in perpetuity.
Can a property under conservation easement be sold, leased or passed down to heirs?
Yes, a property under a conservation easement can be sold, leased, or passed down to heirs. The ownership of the property is immaterial when compared to the compliance with the terms of the conservation easement.
How does a conservation easement restrict land use?
Conservation easements and their restrictions are customized for the natural resources of the property and the needs of the owner. In general, easements prevent subdivision and development. Agriculture and forestry operations are permitted under most conservation easements. Meaning, conserved land can still be used for timber, livestock, and crops. Recreational activities, like hunting and fishing, are allowed. However, activities that negatively impact the conservation of property, such as surface mining, are prohibited. Many landowners choose to reserve the right to build a home on the property or agriculture buildings. Landowners retain ownership of the property and can sell the property or leave the property to whomever they decide.
Does a conservation easement make land open to the public?
No, conservation easements do not make land publicly accessible. Landowners retain ownership and the right to decide who comes on their property. However, once a year a representative from the land trust must visit the property to make sure the easement terms are being followed. Landowners are also informed of the visit ahead of time and are able to be present for the visit.
What land is eligible for placing into a conservation easement?
Land eligible for a conservation easement must demonstrate significant conservation values. Woodlands, wetlands, farmland, endangered species habitat, scenic areas, wild and scenic rivers, and historic places are common examples. Properties must also meet an acreage minimum. For Three Rivers, this is typically 40 acres unless the property demonstrates extremely significant conservation values.
What are the benefits of a conservation easement?
There are many benefits to a conservation easement such as reducing estate and inheritance taxes and reducing federal income taxes for a period of time. Occasionally, grant funding can be available to purchase all or a portion of a conservation easement from a landowner. Landowners are also given peace of mind knowing their land will be protected, in perpetuity.
How does a conservation easement reduce federal income tax?
When a conservation easement is placed on a property, the value of the property is reduced because it can no longer be developed or subdivided. The landowner gets a conservation easement appraisal at the beginning of the process. This appraisal shows the value of the property before the easement is placed on it, the value after it is placed on it, and the difference is the value of the conservation easement. All landowners are encouraged to speak to a qualified tax professional to see how the associated tax benefits will apply to each individual. Three Rivers Land Trust does not give tax advice.
Generally, landowners can claim a deduction of up to 50 percent of their adjusted gross income in the year the conservation easement is donated with a carry forward for up to 15 years (or until the value of the deduction is exhausted). Qualifying farmers and ranchers can deduct up to 100 percent of their adjusted gross income in any year.
How can a landowner receive grant funds for their easement?
What is the difference between donated and purchased easements?
Through a donated easement a landowner can receive substantial tax benefits, while under a purchased easement, they receive tax incentives and grant funding. Placing a property under a purchased easement is a much longer process, ranging from 2 to 5 years in general. Donated easements, on the other hand, take 6 months to a year. Purchased easements tend to be more restrictive and less flexible than donated easements.
Why does it take so long to put a property under easement?
In order to place a property under easement, it must undergo the due diligence phase. This typically includes an appraisal, extensive title work, a survey, site visits, and report drafting. If it is a purchased easement, there is the funding application process as well. Overall, the timeline looks a little different for every property.
Helpful Documents
Three Rivers Land Trust does not provide tax advice regarding the impact of possible conservation easement donations. The scenarios listed above are generic and may not be the same for everyone.
For more information, please contact any of the following at (704) 647-0302 OR land@trlt.org:
- Emily Callicutt, Director of Conservation
- Kyle Shores, Senior Land Protection Specialist
- Jessie Wilson, Land Protection Specialist
- Barry Hull, Sandhills Conservation Coordinator
"Conservation will ultimately boil down to rewarding the private landowner who conserves the public interest"