About Conservation Easements
A conservation easement is an agreement by which the landowner voluntarily restricts his or her land from being developed or restricts the amount of development. Sometimes, a conservation easement only protects existing features. For example, if a building has historic value, a conservation easement can make sure that it is not knocked down after the individuals' death.
Conservation easements are particularly helpful for families that have a family retreat that they want to pass on to future generations. With a conservation easement, the restrictions regarding the property reduce the property value. As a result, the estate tax will drop, and family members can still use the land as they always have. This helps heirs to avoid paying monumental estate taxes to cover the costs of a vacation home after a loved one's passing.
If you are insistent that your house stay up after your death, then you will want to pursue a conservation easement. Without one, buyers can easily bulldoze your home and build a new house or new shops on the property if they are permitted to do so. Many families have to sell family homes after a decedent passes because the estate taxes are just too much to take on.
A conservation easement will help to reduce these taxes. The easement can also qualify for other tax benefits. It is important to carefully consider the prospect of a conservation easement. The easement will have permanent restrictions on the land. This means that once the easement is placed on the property, it can never be revoked. If you live in a historic property, you may also want to see if you qualify for lower property taxes under the Mills Act. This is an act that may allow you to reduce your property tax because your building needs to be preserved for history's sake. Explore these options to protect your property and make necessary arrangements so that you can leave a sound home to your children!
Posted on Mar 18, 2014 1:20pm PDT