Protecting Your Land
Landowners play a vital role in the protection of the diverse natural landscapes that define mid-coast Maine. The Kennebec Estuary Collaboration works with landowners to find the conservation option that best suits the landowner’s needs and wishes. The KEC does not hold conservation easements or title to properties, however, the land trusts may receive lands through the donation of a conservation easement or land, or through a bargain sale of either an easement or land. In each case, we work with landowners to develop the most appropriate conservation method for their property. Discussions with landowners are confidential.
Donating a Conservation Easement
A conservation easement is a type of deed that allows a landowner to maintain ownership while limiting future development. It is a legal agreement between a landowner and a qualified conservation organization or government agency that permanently limits a property’s uses in order to protect its conservation values. Certain rights, which a landowner holds by owning a property, are granted to the conservation organization through the conservation easement.
Easements are customized for each property. For example, some easements keep all or a portion of the property “forever wild”, while others may allow forest management or agriculture, or a limited number of additional buildings.
The donation of an easement can result in significant tax benefits for the landowner if an appraisal of the conservation easement establishes that the value of the property has been reduced by the restrictions in the easement. Property taxes can be reduced if land under easement is also placed in Maine’s Farm and Open Space tax classification.
When the land trust accepts a conservation easement, it takes responsibility for assuring that the conservation values of the property are permanently protected.
Donating Land
An outright land donation to a qualified charitable organization, such as The Phippsburg Land Trust, is a relatively simple transaction and is one of the finest legacies a person can give to future generations. A donation of land is usually the simplest method to conserve its resources, and provides the maximum income and estate tax benefits, which are established by a simple appraisal process.
When a landowner offers to donate land to the land trust, we assess the property to determine its conservation value and the public benefits that merit the effort and expense of our permanent stewardship. If the land is accepted as a preserve, we are committed to protecting it in perpetuity.
Selling Land
Often landowners want to see their land protected but also have financial needs. Selling land usually provides the greatest financial gain for landowners, but is the most difficult to achieve. As a non-profit organization, we must rely on competitive grants and donations to secure funding for the purchase of land at fair market value. Frequently only properties with exceptional conservation or recreational value are eligible for grants. A landowner offering a bargain sale (that is, less than fair market value) to a land trust or government agency increases the chance that the conservation organization can obtain the funds for the transaction.
Tax savings realized by the seller may partially offset the financial sacrifice of a bargain sale. The difference between the appraised market value and the sale price to a qualified non-profit group or government agency may be considered a tax-deductible charitable contribution. Landowners may also offer an option to purchase, under which the buyer and seller agree to a specific sale price and terms, giving the conservation organization a specific time period to raise the necessary funds.
The following chart summarizes benefits and considerations when choosing a conservation strategy.
| Conservation Strategy | Benefits |
Considerations |
Donating Land |
Relief from ownership and management responsibilities |
Relinquish land rights |
Selling Land |
Relief from ownership and management responsibilities Financial returns from sale If a bargain sale, possible charitable income tax deduction |
Requires the land trust to raise substantial funds/apply for competitive grants for which only the most exceptional properties will be eligible |
Conservation Easements |
Landowner retains ownership |
Loss of some land rights |
In all cases, we encourage landowners to carefully consider the options and to consult financial and legal advisors. The Kennebec Estuary Collaboration is available to assist in designing an appropriate conservation plan. We hope for landowners that are pleased and gratified by the opportunity to leave a conservation legacy.
For more information, please contact us at our office: 92 Front Street in Bath; 207-442-7205 or lsewall@kennebecestuary.org. The Maine Coast Heritage website also provides additional information on Land Protection at www.mcht.org.
