Your Conservation Options
Have you ever looked out your window and wondered what will eventually become of the land you love? Your land is part of your legacy; something you cherish and share with family and friends now, and hope to leave for your children and future generations to enjoy.
But the future of most land is uncertain – unless you take steps to protect it.
At this very moment, development is quietly changing our landscape – transforming forest and farmland into residential tracts and new infrastructure. Sometimes it’s beneficial, accommodating the needs of our growing communities. But often it adds up to loss of valuable habitat, vital water resources, scenic views, and places to enjoy the outdoors.
The good news is that there are many ways to protect your land to benefit your family, your community, and the natural environment. Many of our region’s protected areas exist today because private landowners like you decided to take action.
Conservation Restrictions (CR)
A Conservation Restriction is a legal agreement between a landowner and a land trust (or other agency) that protects land from development in perpetuity, while still permitting other specific uses. Landowners commonly use CRs to prevent building on the land, while still allowing for recreation and sustainable agriculture/forestry.
Agricultural Preservation Restriction (APR)
The Massachusetts Department of Agricultural Resources’ APR program also protects land from development in perpetuity, but requires that it remain in active agricultural use. The APR Program benefits farmers, local economies, and the general populace in multiple ways. Most importantly, an APR helps local farmers keep their family farms and reinvest in their land and operations. It also ensures affordable farmland is available to new farmers.
Gifts of Conservation Restriction
Some landowners may wish to protect their land but also retain ownership of it. One option is to donate a Conservation Restriction (CR) or Agricultural Preservation Restriction (APR).
CRs and APRs allow owners to protect their land while keeping it privately owned and able to be sold or handed down to family. These tools permanently restrict certain development possibilities and give a private or public agency (such as a land trust) the right to monitor the property to make sure it stays undeveloped. The CR or APR stays with the property, even when ownership changes. Landowners who donate CRs to land trusts are often eligible for federal income tax deductions. The value of the gift CR is determined by a professional appraiser.
Sales of Land or Conservation Restriction
Owners who want to conserve their property but can’t afford to give away the land or donate a restriction may be able to sell the land or a restriction on it.
Funds are limited for purchasing land and paying for restrictions. Typically, purchases are reserved for land with high conservation value. State agencies have the largest acquisition budgets, but some towns and nonprofits also buy property. The Commonwealth of Massachusetts has an active program of buying or accepting donated APRs on farmland.
Landowners have the option to sell their land below market value to make it affordable to the state, town, or land trust. This is called a “bargain sale.” Bargain sales can offer significant tax advantages - landowners may claim the difference between the sale price and the fair market value as a charitable contribution on their federal tax return.
Gifts of Land
One of the most effective ways to protect your land permanently is to donate it to a land trust or a public conservation agency.
If you want to make it available for public use, and want to be free of the responsibilities of ownership and management, this is an excellent choice.
Depending on the size of the property and its special features, a land trust or agency may be interested in accepting a gift of your land and the responsibility of caring for it. Donating land brings certain tax benefits: It reduces your property tax burden, allows you to avoid capital gains taxes, and may be considered a charitable contribution.
Bequests
Outright donations of land or restrictions may be the simplest way to protect land. But in some cases, landowners may decide to defer a gift of land for personal or tax reasons.
One way to do this is donating through your will. In this case here is no tax deduction, but it would lower the estate value and may reduce inheritance taxes.
Landowners have the option to donate land in stages by gifting separate parcels. They may also donate the land but retain the right to use it during their lifetime (a reserved life estate).
Other planned giving methods include annuities, trusts, donor advised funds, stocks, and life insurance policies.
Read More about Bequests and other Financial Gifting Methods »