FAQ
CONSIDERING A LAND TRUST….WHAT YOU NEED TO KNOW
Putting your property into a land trust or conservation easement isn’t as hard as it sounds. In fact, many people think it is going to take too much time or they just don’t know where to begin. The following are 10 simple steps to take in order to put your property into the Platte Land Trust.
Ten Steps To Setting up A Conservation Agreement
Step 1. You and a
On this introductory visit, you and the staff member or trained volunteer from PLATTE LAND TRUST will have the opportunity to see the property, to discuss your conservation goals, and to address conservation options. You will already have received and completed the "Landowner’s Questionnaire" prior to that visit, so the information about your land and conservation goals will be available to PLATTE LAND TRUST representative.
Step 2.
The Board of Directors reviews all potential land protection projects with the staff to determine if it is appropriate for PLATTE LAND TRUST to pursue the easement at this time.
Step 3. Consult legal and tax advisors.
It is your responsibility to review the legal and financial implications and benefits of donating a conservation easement. PLATTE LAND TRUST can provide you with a list of local advisors familiar with this process, but you are urged to work with those advisors with whom you are comfortable and who will give you the best advice for your personal situation. You will want advice on income and estate tax issues, and the way in which to take maximum advantage of the benefits possible through a conservation easement. You may also want to have an informal consultation with a qualified appraiser. The
Step 4. The
Basic documentation needs to be completed for every conservation easement we accept, since it is the "present condition of the land" that gives us background for continued monitoring. Many of the easements that we accept are set up to qualify as tax-deductible charitable gifts to The Land Trust as a qualified, non-profit, § 501(c)(3) organization. The value of the development rights relinquished through the easement is considered the value of the charitable gift. To comply with IRS regulations, a record of the condition of the property at the time of the donation is required. We call this the "baseline documentation report." It will include photographs, surveys and other important information to represent fully the property and its special features. PLATTE LAND TRUST representatives complete this record of the property during site visits with you and those you designate.
Step 5. You provide legal information to
PLATTE LAND TRUST will need title information to identify the owner(s) of the property and the legal description of the land to be included in the conservation easement. You will also provide information on any liens or mortgages that may exist on the property.
Step 6. You obtain a mortgage subordination for the property.
If your property is subject to a pre-existing mortgage, you are responsible for obtaining a subordination from the lender in order for PLATTE LAND TRUST to be able to accept the easement. We will assist you in explaining to the lender the benefit of the easement to the community-at-large and the charitable purpose of the donation.
Step 7. Together we negotiate the restrictions and draft the easement.
Throughout the steps listed above, you and PLATTE LAND TRUST will have developed a good idea of what type of activities will be restricted by this easement as well as what continued uses of the land you desire. At this time, the draft conservation easement will be prepared by PLATTE LAND TRUST. Your legal advisors and PLATTE LAND TRUST will review the document to be sure that both our interests are served. As this is a legal document, and one that will be attached to the property forever, careful discussion and scrutiny is vital to ensure our mutual satisfaction with the long-term implications of the easement.
Step 8. You obtain a qualified appraisal.
An accurate appraisal is key to understanding what the conservation easement is worth as a charitable donation to PLATTE LAND TRUST, and thus what the tax benefits may be to you and your family. As the property owner, it is your responsibility to obtain this appraisal. After this has been done, no more than 60 days may elapse before the conservation easement document is signed. The final appraisal, then, will be based on the restrictions placed on the property in the conservation easement document.
Step 9. We both sign and record the easement.
When both parties have agreed to all the terms and the wording of the easement, it is time for both to sign the document. You, as the owner, will sign it, as will the authorized representative for The PLATTE LAND TRUST. The conservation easement is recorded by the attorney at the county courthouse, becoming part of the recorded title to the land. This conservation easement is in perpetuity. It will be part of every sale or transfer of this property from this day forward and should be included in the addendum of any appraisal performed after the easement is in place.
Step 10. The
From this point on, PLATTE LAND TRUST is responsible for monitoring the specifics of the conservation easement to protect your land. This usually means an annual visit and review, although a complex conservation easement may require more frequent monitoring. Also, at each transfer of the property’s ownership, a representative of The PLATTE LAND TRUST will contact the new property owner to review the stewardship responsibilities as they are set out in the easement.
WHAT ARE THE COSTS OF PROTECTING LAND THROUGH A CONSERVATION EASEMENT
The Platte Land Trust is frequently asked, "Is there a fee for your services?" The short answer is no. We do not charge a fee for assisting landowners in preserving their properties through the use of conservation easements. The longer answer is that we do ask our landowners to consider the costs that our non-profit organization incurs during the process of establishing each individualized conservation easement, and even more importantly, those entailed in protecting each easement in perpetuity.
Each project requires staff and volunteer time, telephone calls, travel costs, materials and office systems, and so forth. There are also the costs involved in annually monitoring properties, and in being prepared to defend an easement against any legal challenges that may arise. To assure that Platte Land Trust is always able to meet the short and long-term expenses of keeping our promise to you to protect your land forever, we ask you to consider contributing to our Stewardship Fund at the time you establish your easement. All contributions to The Platte Land Trust are eligible to be tax deductible.
Because we advise you to consult with a number of professional advisors prior to signing a conservation easement, you should expect to incur costs associated with those professionals’ fees. They typically include:
- Appraiser to determine the value of the conservation easement.
- Attorney to review Platte Land Trust draft conservation easement, consult with you, provide the legal description, and verify a clear title to the land.
- Accountant or attorney to review the income tax implications of the donation and the estate planning implications and benefits of the easement donation.
- Surveyor to survey the land.
We are happy you are considering placing your property into the
