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Frequently Asked Questions 
about Land Conservation



What is a Land Trust?
A land trust is a private, non-profit organization, chartered by the State Corporation Commission and operating in accordance with federal tax regulations for charitable organizations. Chartered in 1998, The Blue Ridge Foothills Conservancy is a local land trust operating primarily in Madison and Greene Counties. Our mission is to protect, through voluntary land protection, the agriculture, scenic, natural, historic and recreational resources that define character of our communities.

There are over 1200 land trusts in the USA, some of them over 100 years old.  Like the Blue Ridge Foothills Conservancy, the majority of land trusts are local in scope, comprised of community members who share a common desire to protect the open space, farmlands, forest and historic places and natural resources of their area. There are also larger land trusts that operate on a regional, state or national level, such as the Valley Conservation Council, serving 11 counties in the Shenandoah Valley, or The Nature Conservancy, a national organization with chapters in each state.
 
 







How Can Land Owners Protect Their Land?
There are a variety of land conservation tools, which can be tailored to meet the conservation values and financial needs of landowners and their families.  Conservation Options briefly describes some of the land protection tools utilized by land trusts in working with landowners. Conservation easements are the most commonly used method of voluntary land protection.

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What is a Conservation Easement?
A conservation easement is a voluntary legal agreement between a landowner {the grantor} and a conservation organization or agency {the grantee}. As a private landowner, you have certain rights to use and/or modify the resources on your property. Historically, some of these rights – such as mining and timber cutting – have been used, taxed, or transferred separate from the land itself. A conservation easement is based on this principle of separating the "bundle of property rights." 

Working together, the landowner and the grantee identify the conservation values of the land that are to be protected under the easement, such as agricultural productivity, water quality, wildlife habitat, scenic beauty and historic sites.  The agreement also specifies which kinds of land use are to be restricted. 

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What Uses are Permitted?
Land under easement remains in private ownership and management. Typically, current land uses, such as agriculture, forestry, horticulture, wildlife habitat and existing family residences are retained.  Easements on farmland usually provide for changes in agricultural practices over time to sustain the economic vitality of the farming enterprise. Construction of building structures such as culverts, bridges, barns, sheds, fences and dams consistent with best management practices for farming, forestry and horticulture are also permitted. A permanent dwelling (and one or more secondary residences if property size allows) and appropriate incidental buildings are permitted.

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What Land Uses are Restricted?
Conservation easements limit further subdivision of the land by transferring these "development rights" to the grantee and thereafter extinguishing them. In some cases, the limited development of additional residences may be permitted provided that the conservation values of the property are preserved.

Commercial, industrial, and mining development is also restricted. Prohibited uses generally include: changing the topography, such as dredging and filling in wetlands or along streams; disturbing the habitat of endangered species of plants or animals; dumping trash; erecting outdoor advertising structures such as billboards; removing topsoil and other surface or subsurface materials; and constructing commercial or industrial buildings. 

Finally, the land trust (grantee) has a legal obligation to ensure that the terms of the easement are adhered to by the grantor and all future landholders; and therefore retains the right to monitor the property periodically.

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Who Owns and Manages Easement Protected Land?
The landowner retains fee simple title to the property and is responsible for its management within the limits of the easement. The landowner bears all costs and liabilities for the land just as is the case if no easement were on the land. The organization that holds the easement provides ongoing monitoring to confirm the conditions of the easement are being followed.

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Does Granting a Conservation Easement 
        Give the Public the Right to Enter My Property?
Not unless the landowner wishes to allow it for specific purposes such as providing access to a public park or traditionally used equestrian or hiking trails. These limited uses are specifically set forth in the conservation easement agreement.

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Does the Easement Restrict My Ability 
         to Sell, Devise, or Give Away My Land?
Land protected by an easement can be sold, given, or otherwise transferred at any time. Such transfers will not affect the integrity or enforceability of the easement. This is one of the key benefits to protecting land through a conservation easement.

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Does the Easement have to Cover All of My Property?
No, some easements only cover a portion of the landowner’s property. It depends on the location of the resources to be protected and the landowners’ wishes.

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What Kind of Land can be Protected by Conservation Easement?
The land must meet a criteria established by the organization that will hold the easement.  The Blue Ridge Foothills Conservancy seeks to protect land that has agriculture, forestry, horticulture or recreational uses, contains significant natural resources, contributes to the enhancement of air and water quality, preserves historical assets, conserves open space or contributes to scientific pursuits. To qualify for a tax deduction, the conservation easement must also satisfy Internal Revenue Service and State Tax criteria. While these criteria are broad and similar, each parcel of land considered for an easement must be evaluated individually.

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How Long does a Conservation Easement Last?
Most conservation easements are granted in perpetuity, recorded on the property deed and bind all future landowners to the terms of the easement. Under the Internal Revenue Service code, an easement must be granted in perpetuity to qualify for a charitable contribution.

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What are the Benefits of
        Placing a Conservation Easement on My Land?
The majority of landowners place their property under easement because they want to ensure the land they cherish will be protected for the enjoyment of their families and future generations forever. An additional benefit is that the donation of an easement may provide significant financial benefits to the donor, such as:
 
Income Taxes:  Donation of development rights through an easement constitutes a charitable gift, which may be deductible for federal and state income tax purposes. The value of the gift, determined through a qualified appraisal, is equal to the difference between the fair market value of the property before and after the easement is donated. 

To be deductible, an easement must meet certain minimum conservation objectives established by the Internal Revenue Service and applicable State tax laws and regulations. A recent Commonwealth of Virginia law enables persons who donate a qualified easement to claim a credit against their Virginia State income tax equal to 50% of the easement value. This is a direct reduction off your state tax and not just a deduction from your income. There is a cap of $100,000 as of 2002. There is also a reduction in the state Capital Gains Tax for the sale of land under a conservation easement.

Estate Taxes:  State and federal inheritance taxes on unrestricted land are often so high that the heirs are forced to sell some or all of the land justs to pay these taxes. Because an easement reduces the value of the land for tax purposes and therefore the value of the landowner’s estate, the inheritance taxes are also reduced. Thus, an easement may enable heirs to keep land that they otherwise would have to sell.

Gift Taxes: When a landowner gives land to a family member, the gift is subject to federal gift taxes if its value exceeds the maximum tax free amount. Lowering the taxable value of the land through an easement may allow the owner to give more land in any one year without creating a gift tax, or it may help reduce the amount of tax owed.

Property Taxes: Most property protected under a conservation easement qualifies for the lowest county tax rate referred to as "land use" taxes. Landowners whose property is already qualified for land use taxation will generally not see a reduction in property taxes but they will have greater assurance they will continue to qualify for land use taxes.

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What are the Costs to put a Conservation Easement on My Land?
Because placing land under easement entails a long- term commitment, landowners are always advised to consult with their legal and financial advisers, as well as other family members, so as to fully understand the ramifications of this decision. Any associated costs are the responsibility of the landowner. If you wish to pursue the tax benefits of an easement on your land, a professional appraisal is required to determine the difference between the development value before and after granting the easement.  This difference represents the value of the charitable contribution. The cost of the appraisal is generally borne by the landowner; however some limited funding may be available from state sources on a competitive basis. 

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How can the Blue Ridge Foothills Conservancy Help Me?
The Blue Ridge Foothills Conservancy will help you consider your options for protecting your land while meeting your family and financial needs and assess whether your land qualifies for a conservation easement. We will also assist you in preparing the necessary documentation for acceptance and recording of the easement; there is no charge for these services. Until the Blue Ridge Foothills Conservancy is able to hold easements in 2003, we will process easements either through a state agency, the Virginia Outdoor Foundation, or a statewide land trust, the Land Trust of Virginia. If you are financially able to do so, the land trust accepting your easement may request a financial contribution to subsidize the costs of the ongoing monitoring of the easement they are required to conduct.
 
 

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