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Thinking of Future Generations, Linking the Past


Bequests for Conservation with the
Northcoast Regional Land Trust

“You can no longer do nothing if you care about your land” Stephen J. Small, Preserving Family Lands


The principal message for all interested landowners is that bequeathing an easement and/or land to a land trust is the most effective way to ensure perpetual conservation of their lands while continuing to enjoy them uninhibited throughout life. Planning is an essential element of bequests for conservation, and a landowner should not wait or avoid doing the planning.


Bequests are an excellent way for landowners with some foresight and a land ethic to ensure their land continues to be taken care of in perpetuity. The Northcoast Regional Land Trust encourages landowners to begin planning as soon as possible, and to contact us for consultation.

Many choices must be made when planning for a bequest, and many of these choices will be based upon tax-incentives. To protect the conservation value of land, the landowner must consult an attorney, be pro-active, and must act strategically in order to maximize benefits for them and the land.


Giving While Living

Giving Through Will/Testament

Remainder Interest – Generally, when a landowner donates a remainder interest, they reserve the right to live on their property until death but the property will go to NRLT when they pass. To donate a remainder interest for conservation purposes:

  • The same conservation criteria must be met as when accepting an easement donation or gift of land.

  • Often times there are significant Tax Benefits. The value of the remainder interest, for income tax deduction purposes, is typically 25-40% the value of the land (depending on age of landowner).

  • The conservation value of the land must be protected while the landowners continue to live on the land.

    • It is best to also donate a conservation easement while alive, in order to maximize the tax benefits and ensure conservation values protection.

Testamentary Gift of Land – To give gift of land to a conservation organization in will with no tax benefits while living.

  • Gift by will is fully deductible for estate tax purposes – acts as estate tax “protection”.

  • Unlike giving while alive, there are no income tax deductions or savings to benefit from.

  • Allows for uncertainty, and revising will and gift throughout rest of life.


Testamentary Gift of Easement – To give the gift of a conservation easement to a conservation organization in will, with no tax benefits while living.

  • Allows for guaranteed protection of land after passing, and a reduced value on the land subject to estate tax.

  • Unlike giving while alive, there are no income tax deductions or savings to benefit from.

  • Allows for free use of the land without restrictions

    • Subject to agreement with charity to accept land post-mortem


Questions and Answers:


Q. Can I make a donation to the Land Trust but continue to use my land?

A. YES! The remainder interest (living trust), and testamentary gifts can assure the permanent protection of the land, permit the donor to control the property during his/her lifetime, and may reduce the donor's taxable estate.


Q. What if the landowner still is not sure about donating their land to the land trust?

A. They can always choose to add a donation of the land or an easement to the land trust in their will, and have the freedom to change their mind anytime before passing.


Q. What if the landowner wants to leave the family land to their heirs?

A. It is important to consult an attorney about the possible estate tax situations when passing on land to other family members. The estate tax on the land will be remarkably high, though, if the landowner simply wanted to give the land to a family member in their will (possibly a high enough tax to force the sale of the land just to pay).


Q. What if the landowner wants to cash in on the value of the land for retirement, but still retain the primary conservation resources?

A. Options do exist for the landowner that has a conservation priority, but would still like to develop a few lots for income. Dollar comparisons between outright cash sale for development vs donating a conservation easement while withholding development rights for a few house lots can be surprisingly close.


Q. Is the landowner guaranteed a significant tax benefit by donating their land to a conservation organization?

A. It is important for the landowner to consult an attorney about all tax issues when considering a bequest – they are not guaranteed a significant tax benefit.


Q. What if the land meets all requirements in Section 2031 (c)?

A. If the land meets all the requirements in Section 2031 (c) “Estate Tax With Respect to Land Subject to a Qualified Conservation Easement”, then an additional 40% of the remaining value of the land can also be excluded from the estate tax.


Q. To what extent should the Land Trust get involved in drafting the will of the landowner?

A. It is imperative that the Land Trust does not get involved in drafting the will of the landowner – and this includes the Land Trust attorney. Getting involved in drafting the will results in presumptions of undue influence, which places the bequest at risk of being invalidated later.


Q. What if the landowner is not willing to include a stewardship endowment contribution with his/her donation?

A. Just like any other donation, stewardship of the lands in perpetuity costs money, and an endowment contribution should be a condition of bequests.


Information Adapted from:

Stephen J. Small’s Preserving Family Lands: Books I, II, and III

Richard Brewer’s Conservancy: The Land Trust Movement in America

Land Trust Alliance: LTA.org