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Conservation Easement Donations The conservation easement is the primary tool that the Vermont Land Trust uses to conserve land. It provides a flexible approach that permanently protects land while keeping it in private ownership. A conservation easement is a voluntary legal agreement entered into between a landowner and a qualified conservation organization, such as VLT, or a government entity. In order to protect the land's natural resource values, each easement permanently limits a property's uses. Easements accepted by VLT are perpetual. An easement "runs with the land" — it is recorded in the local land records and is binding on both the present and future owners of that property. To read the complete brochure on Conservation Easement Donations (PDF) - click here | ||
A Forest with a Future: Easement Donation Protects a Large Moretown Woodland (article from VLT's Winter 2005 newsletter) | ||
Among the 1,230 projects that VLT has completed in its 28 years, more than 500 have centered on the donation, rather than the purchase, of a conservation easement. But because they generally involve properties of modest size, easement donations don’t always get the most attention or publicity. It’s hard to miss this one, though. The 897-acre parcel of forestland that landowner Jonathan Larsen recently conserved in Moretown is scenic and visible to drivers on routes 2 and 100B, as well as to canoeists on both the Mad and Winooski rivers. The conserved property is also historic, with underground talc deposits and a neighboring, now-disused mine site that once made talc mining an important central Vermont industry. But mainly, for landowner Larsen, these woods are home. He has developed a very personal relationship with them, one that he hopes to pass on to his son, Teddy, 14. For more than two decades, Larsen has had the property under a forest management plan. Its conservation was, for him, the next step in its stewardship. “This donation fulfills a dream I have had ever since I built a house here in the mid-sixties—getting these woods I have grown to love into land conservation,” Larsen said. Under the terms of the conservation easement, the property will be maintained for multiple conservation uses, including forestry, wildlife, and non-commercial recreation. “We were thrilled to work with Jon on this key property for the Mad River Valley,” said Virginia Farley, VLT’s Mad River Watershed regional director. “This is a very large easement donation, and Jon has been a great steward of the property. To have that much land in one ownership, and under forest management, is very significant. “The property also has active deer yards, wetlands, vernal pools, and bear and other wildlife habitat,” Farley added. “And it’s part of a highly scenic corridor on Route 100B, with 3,660 feet of frontage along that road.” Mining Tales The newly conserved Larsen property has talc deposits and is adjacent to the site of an abandoned mine, that was once owned by the Eastern Magnesia Talc Company (formed in 1812). The mine, with a horizontal shaft a mile and a half long, was worked until 1962. “Moretown had a rare, high-grade talc, suitable for cutting into pencils, which were used by metal workers. In 1931, they were the largest manufacturer of talc pencils,” said Penny Hannigan, a paralegal at VLT, whose grandparents both worked at the mine site. “Talc mining was a large industry for Moretown and Waterbury, employing many local people, and it is an important part of the history of Jonathan Larsen’s land,” Hannigan noted. “One of my favorite stories is that the Eastern Magnesia Talc company had a horse-drawn wagon that would go into Montpelier from Moretown every Monday, to pick up the miners who had been thrown in jail over the weekend!” “The Basics” of Easement Donations The donation of a conservation easement by a landowner permanently limits, or prohibits, the development of that property. The restrictions specified in the easement are agreed on by the landowner and the conservation organization. Once the easement is in place, the owner can continue to use the conserved land, within the limits of the agreement. The property can be sold or given or bequeathed to family, but the easement runs with the deed and is binding on both present and future owners of the property. Donating a conservation easement can bring several advantages. Along with ensuring that a treasured property will always remain undeveloped, an easement donation may encourage neighboring landowners to conserve their properties. It may also help to leverage public funds for the purchase of development rights on nearby land, especially working farm or forestland. Easement donations generally qualify for an income-tax deduction—and may ease estate taxes by reducing the value of land in the owner’s estate. A Family Heritage of Conservation In Moretown, “I had always intended to conserve the property,” said Larsen, a former Life magazine correspondent, Time magazine bureau chief in Saigon, and editor of the Village Voice, who divides his time between Vermont and Manhattan. “I’m very active in the environmental movement. I’m on the Board of the Natural Resources Defense Council, and I grew up on a large farming property in Fairfield, Connecticut. “My father gave a 150-acre bird sanctuary in Fairfield to the Connecticut Audubon Society, and he created the Nantucket Conservation Foundation [in Massachusetts] with an initial gift of land that inspired many others to follow his lead,” Larsen said. “Between the foundation and a few smaller groups that were started afterward, close to 30 percent of the island is now protected.” Larsen had followed in his father’s footsteps even before making this recent donation. Three years ago, he donated a neighboring 95-acre property to VLT, which conserved and resold it, with the proceeds going to support VLT’s capital campaign, Vermont at the Crossroads. “I’ve always believed in conservation as well as environmentalism,” added Larsen, who has developed a system of hiking and cross-country skiing trails on the land. “My son comes out with me on occasion, and helps me do some trail clearing. Hopefully he’ll get more into that. At least I’ve got him skiing and snowshoeing.”
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Conservation easements offer several advantages to landowners:
Lands Protected Through a Conservation Easement Rights Retained by the Landowner with a Conservation Easement
Restrictions Placed on the Landowner by a Conservation Easement
Conservation Easements and Public Access How Easements Are Monitored and Enforced Monitoring begins with the preparation of a Baseline Documentation Report for each property, describing the land's physical and resource attributes. Once the baseline documentation is complete, the Stewardship staff schedules appointments at least once every two years to visit each property and discuss any changes or future plans with the landowner. VLT also supplements its ground monitoring efforts with aerial monitoring. If a violation is discovered, the Stewardship staff will attempt to personally contact the landowner in an effort to correct the problem. If this does not succeed, VLT will notify the owner by certified mail, identifying the corrective action that is required. If voluntary efforts prove unsuccessful, VLT will file a court enforcement action. So far, the few violations of the Vermont Land Trust's easements that have been discovered have all been corrected voluntarily. Tax Benefits of Donating Conservation Easements This requirement can be met if the easement conserves land that:
The donor may take a deduction for the easement's value, which is determined by a qualified appraisal. The appraisal must be prepared by a qualified appraiser, and the document must fulfill certain regulatory standards. To secure a charitable income tax deduction, a summary of this appraisal must be submitted on IRS Form 8283 signed by the appraiser and VLT, with the donor's income tax return for the year of the gift. For donations made after June 3, 2004, that are valued in excess of $500,000, the complete qualified appraisal report must be appended to the tax return. If the land has appreciated in value, the deduction may not exceed 30% of the donor's adjusted gross income -- but any unused portion can be carried over for up to five more years. Vermont's income tax is a percentage of the federal tax, so an easement donation may also reduce state income taxes. Finally, a conservation easement can reduce potential estate tax liability. The value of conserved property for estate tax purposes must take into consideration any reduction in property value resulting from the donation of an easement. Advice Landowners Should Seek Before Donating a Conservation Easement Conservation easements are perpetual and involve a technical area of the law. Each landowner should consult with his or her own attorney to review the conservation easement in detail. If income or estate tax benefits are important, the landowner may also wish to consult with an accountant or tax planner. VLT does not recommend specific advisors but can provide donors with a list of attorneys and accountants who have expertise in this area. Revised January 2005 Vermont Land Trust has developed a detailed series of publications. Click here for a complete list. To receive a copy of any of these materials, please contact the Montpelier office. Vermont Land Trust EASEMENT DONATIONS make up more than one-third of VLT’s total land transactions. Although often less publicized due to the donor’s wishes, they are an important component of VLT’s work. Donations Remain Critical to VLT's Work These links provide other information about VLT's family lands conservation program:
The following links provide information for you, if you are interested in conserving land that does not fall into this category: | ||
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