What is a conservation easement?

A conservation easement is a tool for land protection. A conservation easement is a legal agreement which supports permanent restrictions on the use or developments of a property. A conservation easement protects sensitive areas on private property while keeping ownership of the property in the hands of the landowner.

A conservation easement protects the land in perpetuity.
An appropriate 501(c)(3) Land Trust (like BHCT) is the holder of the legal easement as approved by the IRS. These rules apply under IRC 170(h)(2).

Why should I consider a conservation easement on my property?

A conservation easement will protect environmentally sensitive or historic property features in perpetuity. A conservation easement protects the land without sacrificing control of private property. There are income tax benefits to conservation easements. A conservation easement could greatly reduce estate taxes. The greatest reward for conservation easements is the knowledge that the land you loved will be protected for future generations as well.

Does a conservation easement mean that I no longer have control of my property or that the BHCT owns the property?

No, The property will remain in private ownership and can be sold or passed on to heirs, but the property cannot be used for purposes inconsistent with the conservation goals laid out in the easement document. A conservation easement permanently limits development of the property in accordance with the easement donor’s wishes. This means that the limitations of development are specially designed for each property under consideration. Some property owners may wish for larger limitations, and others may wish for only smaller limitations.

Does the BHCT decide what part and how much should be under easement?

No. The ultimate decision is between the Landowner, the legal representative of the landowner and the IRS who ultimately determines qualifications. BHCT can assist property owners with each step along the process and would be the holder of the easement The land trusts job is to ensure that that easement is protected in perpetuity by enforcing the restrictions as outlined in the agreement with future property owners.

For more information feel free to contact BHCT offices at (847)381-4291 Some good articles have been published on conservation easements recently:

¬AARP Magazine, May & June 2007
Wall Street Journal, 2/7/07, Tax Break With a View
Chicago Tribune, Lew Sichelman, Real Estate