Conservation Options for Landowners

Conservation Easements: A conservation easement is a voluntary, written agreement between a landowner and NCNR. In this agreement, the landowner agrees to keep the land in its natural condition without extensive disturbances. The landowner continues to own the property but has to abide by the restrictions of the easement. NCNR is granted the right to enforce the provisions of the easement and to monitor the property. The specific provisions of an easement depend on the particular property and are negotiated between the landowner and NCNR. Some conservation easements totally restrict future development while others allow a few home sites for family members. The land placed under a conservation easement can subsequently be sold, but it will still be subject to the conservation easement agreement. Granting a conservation easement does not mean a landowner must grant public access to the property.

Bargain Sales: A landowner may sell a tract of land or a conservation easement to NCNR for a price below market value and receive tax benefits based on the cost reduction of the land. The bargain sale price is determined by certified appraisal and is the difference between the fair market value and the agreed upon lower price. The bargain sale price is considered a donation and is eligible for tax benefits. This is a flexible and innovative way to maximize the financial return on the property.

Donation of Land: A landowner may donate land to NCNR to receive various tax incentives. The title is deeded to NCNR, so the landowner will know the land will be permanently protected, and the landowner is eligible for tax benefits. This is a good option for those wanting to see their land preserved, yet no longer wanting to manage the land.

Fee Simple Purchase: NCNR may purchase a tract of land for its full-appraised price. The landowner receives fair market value for the land, but does not get any tax benefits. This can be attractive to those landowners who are seeking to sell their property but realize the importance of preserving the unique qualities of the property.

Remainder Interest Trust or Reserved Life Estate: Using this method a landowner can donate their property to NCNR and continue to live on the land during their lifetime. The donation of a remainder interest allows the donor to continue to live on and use the land during their lifetime, but then the title of the property will transfer to NCNR. A conservation easement can be placed on the property during the landowner’s lifetime, or it will certainly be in place when NCNR transfers the title to the property. Utilizing the remainder interest offers many advantages: the donor continues to use the property throughout their life, the property is permanently protected, the landowner can enjoy tax benefits at the time of the gift, and the sale of the property will support NCNR.

NCNR highly recommends that landowners contact an attorney or accountant for legal support and to maximize tax benefits. NCNR can offer technical assistance. However, we are not the legal representative of counsel of those whom we assist, and we make no claim as to the legal sufficiency or financial effects of our advice or assistance. Landowners should act in these matters only after deliberate consideration and a thorough review of the tax implications by their own attorneys, accountants, tax specialist, appraisers or financial planners.

Conservation Options l Criteria l Tax Benefits l Protected Lands