It occurred to me that we are discussing conservation easements, but there may be some who are not familiar with this fine tool of preservation.

Conservation easements are negotiable prior to grant.   If carefully and properly formulated they can be a very valuable tool in tax savings, preservation, real estate use and values.  Some incorrect myths about conservation easements include requirements for public access, stripping of all rights from a property, or that the government has a roll in the ownership and/or management of the property. 

Conservation easements are a widely used form of preservation and IF done properly, they add value and financial benefit over time.  Easements with real conservation value benefit not only the property on which the easement is placed, but the entirety of the local eco-system.

In simple terms, a conservation easement is the grant of certain rights of ecological value to a Qualified Grantee (the organization that accepts the donation).  Every property has a bundle of rights.  You can build roads on it, subdivide it, sell or transfer the land in pieces, mine it, timber it, farm it, improve it, etc.  Just as a donation of an art piece to an art museum carries with it certain tax benefits, so, too, do these property rights have a donative value.  The appraised value of the bundle of rights donated becomes tax deductions which can be extremely beneficial to the Grantor (the person giving the easement).  Deductions lessen taxable income.  Many states give tax credits for easements, in addition to the Federal deductions.  These credits come directly off the amount of tax owed.  

Many Fortune 1000 companies (Plum Creek, Wal-Mart and International Paper to name a few) states, federal agencies, counties, and now local municipalities are involved in the grant of easements.  Easements maintain open space, agricultural values, wildlife, fishery, and habitat.  Certain easements target historic preservation.  When a conservation easement is negotiated, certain parts of the bundle of rights can be donated, and certain parts of the bundle of rights can be reserved.  These are Reserved Rights. 

If planned carefully a conservation easement does not strip the property owner of all rights.  Indeed, tthe easement can add value to the local eco system, generate significant tax benefits for the property owner and protect the parcel from future development and land abuse in perpetuity, and thereby increase the value of the Reserved Rights. 

Photo Courtesy of SSH Copyright 2008