Frequently Asked Questions about Conservation Easements        
   
1) Why should I consider a conservation easement?
People put a conservation easement on their property because they love their land and want to protect it from inappropriate development while keeping their private ownership of the property. Granting an easement to a conservation organization that qualifies under the Internal Revenue Code as a "public charity" - which nearly all land trusts do - can yield income and estate tax savings. Moreover, land trusts, some of which are more than 100 years old, have the expertise and experience to work with landowners to ensure that the natural and open land values of their property will endure.

By working with a nonprofit land trust, you can decide the best conservation tool to use to protect your land. You can select from a number of tools, including the outright donation of your property, the donation or sale of a conservation easement that permanently restricts development, the bargain sale of your property, and several other variations. You should always have legal advice before embarking on such a decision.

2) Are there tax benefits associated with land protection?
Yes, there may well be income, estate and property tax benefits for donating your land, donating a conservation easement, or selling the property as a "bargain sale" at below market value. The amount and type of tax benefits depends on a variety of factors, including the legal tool you've used to protect your land, the value of the donation, your income level and the total amount of your estate.  You should consult with a financial advisor and/or an attorney to fully understand the tax implications.

3) Are there costs associated with the donation of a conservation easement?
Since conservation easements are legal documents, they require the professional services of lawyers, accountants, and appraisers to properly prepare them.  Some of these costs are assumed by the land trust and some by the landowner.  In addition, we ask conservation easement donors to assist in the costs of perpetual monitoring, stewardship assistance, and enforcement of the easement by contributing to our Stewardship Fund at or before the closing date. 

4) Are my property taxes affected?
No.  By Montana statute, property taxes cannot be reduced by the donation of a conservation easement.

5) How long does it take to put a conservation easement on my property?
While an easement can be completed in as little as 1 month, it takes between 3 to 6 months to finalize a typically easement.  Since Five Valleys Land Trust only accepts perpetual conservation easements it is in the organization’s and the landowner’s best interests to be thoughtful and thorough throughout the process.

6) Does a conservation easement prohibit future development?  Can I still build a house or other structures on my land after granting a conservation easement?
An easement restricts development to the degree that is necessary to protect the significant conservation values of that particular property. Sometimes this totally prohibits construction, and sometimes it doesn't.  Landowners wishing to reserve the right to build a home(s) on their property can request that such language be written into the easement document.  Landowners and land trusts, working together, can draft conservation easements that reflect both the landowner's desires and the need to protect conservation values. Even the most restrictive easements typically permit landowners to continue traditional uses of the land such as farming and ranching.

7) Can a conservation easement be put on a portion of my land?
Yes.  Easements can be tailored to each piece of land as well as to each landowner’s wishes.  It is possible to protect all of part of your land with a conservation easement.  It is up to the land trust to decide if these exceptions will still meet its objectives for accepting a particular easement.

8) Does a conservation easement open my land to the public?
No.  Unless one of the landowners’ purposes for the conservation easement is to allow public recreation, a conservation easement does not include public access.  Landowners conveying an easement only relinquish the property rights they agree to.  This includes the continued right to control public access to their land.

9) How long does a conservation easement last?
Most easements "run with the land," binding the original owner and all subsequent owners to the easement's restrictions.  Only gifts of perpetual easements can quality for income and estate tax benefits.  The easement is recorded at the county records office so that all future owners and lenders will learn about the restrictions when they obtain title reports.  Five Valleys Land Trust only considers perpetual easements.

10) What are a land trust's responsibilities regarding conservation easements?
The land trust is responsible for enforcing the restrictions within the easement document. Therefore, the land trust monitors the property on a regular basis to determine that the property remains in the condition prescribed by the easement document. The land trust maintains written records of each monitoring visit. These visits also  provide the landowner and land trust a chance to keep in touch and maintain a healthy working relationship. Many land trusts establish endowments to pay for long-term stewardship of the easements they hold.

11) How often does FVLT monitor conservation easements?
Typically, once a year.

12) Can FVLT staff come on my land whenever they want?
FVLT staff always contacts the landowner to set up an appointment to monitor the conservation easement.

13) What happens if I decide to sell my land?
Since perpetual conservation easements "run with the land", the property is sold with the conservation easement attached.  Any future owners of the land are subject to the same restrictions as the landowner who initiated the easement.