Preservation Tools for Private
Landowners
You and your family may have kept your land in its natural state
for years. Whether a working farm, forest, shoreline, wetland, natural prairie,
or other open space, you have the ability to be sure that it remains as it is, to be
appreciated by future generations.
Why consider land
preservation today?
The fact that you and your family may have voluntarily protected
your land from harmful development for years may not be enough . . .
Subsequent owners of your property may not appreciate the land the way you do
and may decide to sell for development . . .
High estate taxes may force your heirs to sell all or part of the land that you
have managed so carefully . . .
The income tax deduction available for a qualified
donation is a powerful tool for land protection and financial planning . . .
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How can your land be
protected?
There are many different options for landowners seeking to
protect their land:
Preservation Agreement
(Conservation Easement): A preservation
agreement is a legal agreement between a landowner and a land conservancy that
permanently limits uses of the land in order to protect its conservation values. It allows you to continue to own and use your land and
sell it or pass it on to heirs. A preservation agreement may result in an income tax deduction and reduced property and
estate taxes.
When you donate a preservation agreement to the Saginaw Basin Land Conservancy,
you permanently give up some of the rights associated with the land. For
example, you might give up the right to build additional residences while
retaining the right to rebuild an existing home on the property. A preservation
agreement can
allow appropriate development on areas with limited conservation value and limit
development in areas that most require protection -- preservation agreements are
quite flexible provided that conservation values are adequately protected.
A preservation agreement that meets federal Internal Revenue Code
requirements can qualify as a tax-deductible charitable contribution. An
agreement on the property may also result in property or estate tax deductions.
Land Donation:
Donating land to the Saginaw Basin Land Conservancy for conservation purposes is
one of the greatest legacies a person can leave to future generations.
It may be the best conservation strategy for you if:
- you own highly appreciated property
- you own property you no longer use
- you do not wish to pass property on to
heirs
- you may be facing high estate taxes, or
- if you wish to be relieved of the
responsibility of managing property with significant
conservation values
Land can be donated to the Saginaw Basin Land Conservancy
outright, or a landowner can donate the property during his lifetime while
reserving the right to live on and continue to use the property. Once the
landowner dies, the Saginaw Basin Land Conservancy takes title and control over
the property. This tool is referred to as a donation of a remainder
interest.
By donating a remainder interest to the Saginaw Basin Land
Conservancy, a landowner can continue to use and enjoy his property during his
lifetime, possibly receive an income tax deduction, and (most importantly)
know that the land will be permanently protected.
Land or a preservation agreement can also be donated
through a
will, potentially providing the donor with estate tax savings.
For more information:
Contact us at:
P.O. Box 222
311 Fifth Street
Bay City, MI 48707-0222
(989) 891-9986 phone
(989) 891-9987 fax
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