Future of My Land > Seeking Professional Help > Conservation Related Estate Planning Tools

Frequently used Conservation Related Estate Planning Tools

• Fee Simple Donation or Sale
• Conservation Restriction Donation or Sale
• Bargain Sale
• Conservation Based Development

Fee Simple Donation or Sale

A fee simple donation is the transfer of a property by deeding it directly to a land trust or government agency for conservation or other purposes without accepting any money for the property. Tax benefits may be available to the donor.

Owners whose properties have significant ecological, historic or cultural value may be paid for their land. The sale of property brings with it capital gains tax implications that landowners should speak to a professional about.

See case studies of Massachusetts landowners who used fee simple donation or sale to conserve land

Conservation Restriction (CR) Donation or Sale

Every piece of land has the right to multiple uses, dependent on local zoning and building regulations, such as adding a shed, digging a well, or building a house. It is possible to restrict or prohibit some of these uses while maintaining the others.

A conservation restriction is a legally binding covenant between a landowner and an organization such as a land trust or state agency. The CR protects the natural and scenic features of the property by restricting selected uses, such as development. A conservation restriction can cover all or part of a property. CR’s are permanent and remain in effect when the land is sold or inherited. Landowners often choose a conservation organization to work with based on shared values.

A conservation restriction allows a property owner to retain ownership of the property, including the ability to pass the property on to heirs or sell the property, while still providing for its protection. Successive owners take the land subject to the same restrictions. It assures that future use of a property will be consistent with conservation purposes through specific clauses in the CR document. The CR document is a flexible tool and can be tailored to the specific goals of the landowner. The property remains in private ownership and does not need to be opened to the public.

Any landowner can donate a CR. For income tax purposes, this is considered a charitable deduction under most circumstances. The value of the charitable deduction is based on an appraisal of the difference between highest and best use value of land (development potential under current zoning) and the restricted value of the land.

Owners whose properties have significant ecological, historic or cultural value may be paid for their conservation restriction. The sale of a CR brings with it capital gains tax implications that landowners should speak to a professional about.

See case studies of Massachusetts landowners who have used conservation restrictions to conserve land.

Bargain Sale

A bargain sale is the sale of a property to a qualified tax exempt organization, such as a land trust or government agency for less than the fair market value. A bargain sale can provide a tax benefit to the property owner as a charitable contribution, which is based upon the difference between the appraised value and the actual sale price of the property.

See case studies of Massachusetts landowners who used bargain sales to conserve land.

Conservation-Based Development

Conservation-Based Development is when a portion of the property is protected and another portion is converted to development. The areas with the greatest conservation values are protected through one of the tools described above. Other areas of the original property are sold for development. Conservation-Based Development results in the protection of the most significant areas of the property and the ability to generate monies for the landowner. This approach may also afford tax benefits if a CR is donated to protect the high value areas.

See case studies of Massachusetts landowners who used conservation-based development to conserve land.