Volunteers take a break from walking the land of a potential NPC project.
Doing nothing to protect it may doom your land to development.
Estate taxes are one reason. Federal taxes can be as high as 55% of a property's fair market value, virtually forcing heirs to sell it. And, of course, future owners may be compelled by ever-increasing property values--or simply by a lack of appreciation for the land--to sell it for development.
A land trust like the Northcentral Pennsylvania Conservancy is a great resource for assisting landowners find ways to protect their land. Here are a few of the options available:
Conservation Easement
A legal agreement between a landowner and a land trust or government agency that permanently protects land while the landowner continues to own it. Donating the easement can result in reduced income tax and estate tax.
Land Donation
Donating conservation land to a land trust is a wonderful way to share its beauty with future generations. The donation can even be set up in a way that allows you to continue to live on the land or to receive a life income.
Bargain Sale of Land
Selling land to the land trust at less than its fair market value can make it affordable for the land trust and provide tax benefits for the landowner.
Conservation easements are a widely used land protection tool. Conservation easements permanently protect the land and allow it to remain in private ownership. A conservation easement agreement (easement) is a perpetual, legally binding agreement between a landowner and NPC regarding the use of a property and development allowed on the landowner's property.
The easement spells out the permitted uses of a property, including such things as agriculture, forestry, recreation, habitat improvement, and other open space uses. The easement also spells out any other permitted uses of the property. This includes such things as where additional structures may be built and the amount of sub-division that will be allowed. Once an easement is granted, the landowner can give, sell, or otherwise transfer the property. The easement follows the deed to the property, binding all future owners.
If the information provided here does not answer all your questions, please contact the NPC office at 570-323-6222. If you are interested in discussing a property you own, and what your options are for conserving it, please download the Landowner Questionnaire (PDF, 66KB), complete it, and mail it to the NPC Office, PO Box 2083, Williamsport, PA 17703.
- Answers to common questions about conservation easements (PDF, 17KB)
- Steps in the Conservation Easement Process
(PDF, 23KB)
- Costs associated with conservation easements
(PDF, 18KB)
- Links for more information about conservation easements
LAND DONATION
Donating land for conservation purposes is truly one of the finest legacies a person can leave to future generations. It may be the best conservation strategy for you if you do not wish to pass the land on to heirs; own property you no longer use; own highly appreciated property; have substantial real estate holdings and wish to reduce estate tax burdens; or would like to be relieved of the responsibility of managing and caring for land.
Donating land releases you from the responsibility of managing the land and can provide substantial income tax deductions and estate tax benefits (while avoiding any capital gains taxes that would have resulted from selling the property). Most important, if the land is donated because of its conservation value, it will be protected. (Although our focus here is on conservation land, commercial and residential properties can also be donated to a land trust, with the understanding that the organization will sell the land to support its conservation work.)
BARGAIN SALE
If you need to realize some immediate income from selling your land, yet would like the property to go to a land trust, a bargain sale might be the answer. In a bargain sale, you sell the land to a land trust for less than its fair market value. This not only makes it more affordable for the land trust, but offers several benefits to you: it provides cash, avoids some capital gains tax, and entitles you to a charitable income tax deduction based on the difference between the land's fair market value and its sale price.
MORE INFORMATION
The Conservancy has additional written material on land protection options available through its office. Please call 570.323.6222 for more information.
Note: The information on this website is designed to provide accurate, authoritative information in regard to the subject matter covered. The Northcentral Pennsylvania Conservancy is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of experienced professional advisors should be sought.