Land Conservation Options
For many landowners and families, the natural beauty and legacy values of their land are at least equally important as its financial value. Your land may be where you raised a family, explored nature, worked in the woods, and took walks.
To meet their family’s personal needs or out of a desire to preserve nature, some landowners limit the types of activities that happen on the land in the future so that all or some of it will stay in its natural or undeveloped state through the use of land conservation tools. In addition, these land conservation tools often provide some positive financial values through income or tax savings.
Understanding these options is an important step in deciding the future of your land. Below are descriptions of commonly used land conservation tools and links to stories of families from across the state who have used them to achieve their goals. Speaking with a land protection specialist working for a land trust can help you determine which tool may be right for you. Find a land protection specialist working in your town.
Donating or Selling Conservation Restrictions
Your land includes several different types of rights, including the right to develop your land, farm, hunt, and manage your woods. A conservation restriction (known as a conservation easement in states other than Massachusetts) is a legal agreement that extinguishes some or all of the development rights of the land forever, but allows your other rights such as farming, forestry, and recreation to continue, all while maintaining your ownership of the land.
A conservation restriction (CR) is a flexible tool that can be placed on all or only designated parts of your land, allowing you to reserve house lots to provide financial value or housing options for your family. Some CRs allow public access, others do not—it usually depends on which organization you work with and whether you are receiving funds for your CR.
A CR can be donated, which often provides the landowner with a tax deduction for a charitable gift. Learn more about some of the tax incentives for donating a CR. A CR can be sold for income if the land has exceptional natural resources. A CR can also be sold below market value for both income and tax benefits (see “Bargain Sale” below).
Donating or Selling Land
Land can be permanently protected by donating it or selling it to a qualified conservation organization, such as a land trust or state conservation organization. Donations of land may provide significant tax advantages as a charitable gift. Learn more about some of the tax incentives for donating land.
Bargain Sale
Landowners can sell their land or conservation restrictions at a price below its fair market value. The difference between the appraised market value and the sale price to a qualified conservation organization, such as a land trust or a state conservation organization, is considered a tax-deductible charitable contribution, providing some income and potentially some tax benefits. Learn more about some of the tax benefits for bargain sales.
Bequest
A donation of land or a conservation restriction through your will is another way to ensure your land’s permanent protection and potentially to reduce your estate tax burden. You can change your will at any time, and a bequest does not become effective until your death. This is a good approach if you need to keep the financial value of your property in reserve in case of unexpected medical bills or other needs, but want to be sure the land will be conserved if you do not need to sell it during your lifetime.
Reserved Life Estate
Landowners sometimes negotiate a gift or sale of the property while reserving the right to occupy and use the property for life. Upon the death of the landowner, control of the property automatically transfers to a conservation organization. The gift of a property with a reserved life estate can qualify the donor for a charitable deduction based on the value of the property donated and the value of the reserved life estate, which is all based on the donor’s age.
Limited Development
Limited development is an option that protects the majority of the land while a small portion is sold or maintained by the landowner for future development. In a limited development scenario, the areas with the greatest conservation value are protected through one of the tools described above, while other less sensitive areas of the land are set aside for future development.
Related Links
- Find a land protection specialist in your town
- Publication: Protecting Your Legacy
- Publication: Using a Will to Pass on Your Land
- Recorded Webinar Series: Protecting Your Legacy
Document Downloads
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Learn your options for planning the future of your land
Foxbard Farm
The Smith Farm is one of the original farms in Shelburne. Over time through succeeding generations, parts of it were sold off, primarily as house lots.
The significantly large, new home was proposed to be built on the hill in the background.
John Payne and the potential development site in the background.
This hayfield has good road frontage and high development potential.
In 1999, the family put 95 acres on the market , in one 70-acre piece, and three 8-acre house lots.The owner called John Payne first, before it was put on the market, to see if he, as an abutter, was interested in buying it. The property was in Massachusetts Chapter 61A [current use property tax program, affording agriculture and forest land property tax relief].
One important and relatively unique provision of the Massachusetts current use tax program is that the community has the right-of-first-refusal to purchase the land at the price offered by a willing buyer. Communities have 120 days within which they can exercise this right. The proposed sale of the land would remove it from Chapter 61, hence the community needed to decide if it would exercise its right of first refusal.
Neighbors of the property wanted the town to exercise its right. The Franklin Land Trust which is active in the area wanted to participate. In a non-binding special town meeting decision, citizens voted to pass the right-of-first-refusal on to the Franklin Land Trust (FLT). The Selectboard took this "sense of the town", and passed the right to FLT, which initiated a campaign to raise the money to buy the land at the asking price. The fundraising was local, with interest expressed by neighbors and others.
John Payne's land has some varied and interesting terrain.
During the fundraising campaign and negotiations, FLT director Mark Zenick approached John Payne with an offer of a long-term lease and care of the land. FLT saw its mission as accomplished, since the land had been protected from development, but it did not want to be in the business of managing the land.
John Payne signed a 99-year lease to the 95 acres owned in fee by FLT. John pays $500/year to FLT, as well as $200/year to the town in a payment in lieu of taxes, since the property is owned by a non-profit and technically could be considered off the tax roles. John Payne manages and improves the land as part of his overall farm operation.
Learn more about the conservation strategies used:
Neighbors of the property wanted the town to exercise its right. The Franklin Land Trust which is active in the area wanted to participate.
Payne's land, and Shingle Hill tract, both outlined on an air photo along with other protected land.
Payne's Foxbard Farm and surrounding protected land.
Payne's Foxbard Farm, and adjacent Shingle Hill tract, outlined in orange and next to other protected lands.
John's father grew up in Greenfield. He bought the farm in 1943 from two elderly brothers who retained life tenancy after the sale. John's father retired to the farm in 1971 to run it.
John returned to live permanently on the farm in 1998. John has a brother who lives out-of-state and visits periodically, and as an avid birder loves the farm for different reasons.
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