A conservation easement is a method through which you can protect the environmental quality of your land while continuing to own it. It is a legal agreement between a landowner and nonprofit conservation organization which is a land trust or a public agency that permanently limits the uses of the land in order to protect its conservation values and to ensure that the owner’s conservation goals for the property are upheld. Conservation easements are powerful tools for preserving open space and for enabling you as a landowner to determine the future of your real estate.

The goal of a conservation easement is to protect the conservation values of the land. Every conservation easement is tailored to met the desires of the individual landowner. When you grant a conservation easement on all or part of your property, you remain the landowner and retain control over who has access to your property. An easement must protect that land’s ;conservation values, but it can also be fashioned to meet the financial and personal needs of the landowner. For example, an easement on a property containing rare wildlife habitat might prohibit any development while one on a farm might allow continued farming practices and building of additional agricultural structures. An easement may allow appropriate residential and/or commercial development on a certain portion of the property. The exact terms of the easement are discussed and agreed to by the landowner (the donor) and the land trust (the donee). The easement is donated by the landowner to the land trust which has the legal authority and obligation to enforce the terms of the easement in perpetuity. When you donate a conservation easement to a land trust you voluntarily give up some of the rights commonly associated with land ownership, specifically all or some of the owner’s right to develop it. Even if you sell your land or pass it on to your heirs, a conservation easement will protect it from losing the natural character which makes it so special. The landowner stills owns the property and can use it, sell it or leave it to heirs, but the restrictions will stay with the land forever.

While permanently protecting important conservation qualities on your property without giving up private ownership, the donor of a conservation easement usually receives tax benefits also. In most cases, significantly restricting the number of home sites on the land lowers its market value. Conservation easements can greatly reduce estate and property tax burdens and provide substantial income tax benefits. A conservation easement donation that meets federal tax code requirements - in essence that provides public benefit by permanently protecting significant conservation resources - can qualify as a tax-deductible charitable contribution. For income tax purposes, the value of the donation is the difference between the land’s value with an easement and its value without the easement.

In addition, by granting a conservation easement you can protect your heirs from exorbitant estate taxes - and possibly the need to sell your cherished land to pay those taxes. Since estate taxes are based on the fair market value, your heirs will pay less estate tax if you have voluntarily given up the development rights on the land. This can make a critical difference in the heirs’ ability to keep the land intact. Furthermore, if you donate a conservation easement which meets certain criteria under the State of Illinois statutes the property can qualify for a significant reduction in its assessed value and a subsequent property tax deduction.

The future of private lands rests in the hands of those who own them. If you are interested in exploring the preservation of your land, granting a conservation easement can be a rewarding and exciting way to leave a legacy for future generations. It is also an intricate and sometimes lengthy process.

The Jo Daviess Conservation Foundation is available to help you achieve your goals.

~~ JDCF Director Nancy Winter prepared this article and may be contacted to discuss conservation easements and review her experience in developing a conservation easement on her parents land in Dupage county. Phone 815-598-3324