Lower Merion Conservancy

Common Conservation Techniques

There are many ways to conserve your land. Below is a brief summary of some of the most commonly used conservation techniques. Each has the potential to protect all or part of your land while meeting your financial and family goals. Of course, it is important to consult your financial and legal advisors before you enter into any kind of conservation transaction. You will want to pay particular attention to tax implications. Most conservation projects will impact one or more of the three primary types of taxes--income, estate and property.

OUTRIGHT DONATION OF LAND AND ENDOWMENT
Most straightforward way to protect your land and ensure that it is properly managed in the long-termFull title and ownership are transferred to a nonprofit conservation organization or qualified government agencyGenerally offers the maximum potential tax benefitEndowment needed for on-going care of the property

DONATION WITH LIFE ESTATE
Similar to outright donation but allows you to retain the right to live on the property for the rest of your lifeTax deduction will be less than in an outright donation

BEQUEST
Donating your land through your will or living trust allows you to maintain complete control of the land while you are aliveMay leave a life estate for your familyDo not receive an income tax deduction for donation but significantly reduce estate taxes

CONSERVATION EASEMENT
Places permanent restrictions on development of your landYou retain ownershipBinds all present and future owners of the eased landMay receive an income tax deduction in return for reducing the market value of the land—may also reduce estate taxes

BARGAIN SALE
Protects land by selling it to a conservation group for less than market valueDifference between bargain sale price and fair market value is considered a charitable donationTax benefits may include deduction for donation and decreased capital gains tax liability

LIMITED DEVELOPMENT AND CONSERVATION SUBDIVISION
Alternatives to traditional development: portion of land is developed while rest remains open spaceBalances need for higher financial gain with desire to preserve landCareful planning ensures that most critical ecological features are preserved

DONATION AS AN ASSET PROPERTY
Contribute land/home and allow the organization to sell it and use the funds to support conservationCan protect land with easement before it is resoldMay receive income tax deduction for contributionGood alternative for smaller parcels

Updated: 9/22/2006 © 2010Lower Merion Conservancy. All rights reserved.

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