Haywood Waterways Association

Haywood Waterways Association Archives

Conservation Easements
A gift that keeps on giving

We have just come through a time of year when we were busy trying to find that special gift for a friend or loved one. We tried to find something of lasting enjoyment and value.

There is a gift that some of us can make that will provide benefits to all Haywood County residents for generations to come. You cannot find it in a discount mall or department store - you will more likely find it in your own backyard. That gift is a Conservation Easement to a local government or qualifying non-profit organization.

Economic pressures are increasing in Haywood County, and land uses are changing from agriculture to commercial and residential. In some cases, these changes put the best farmland in non-agricultural uses. In other cases, there are adverse consequences for our water quality. The increasing sediment in Lake Junaluska highlights that concern.

A gift of a Conservation Easement can assure permanent protection of our most sensitive resources. For example, an easement along the riparian zone of a stream can enhance the water quality of the stream, and lower water temperatures. In other cases, it may help keep the family farm in the family. This is how they work.

A Conservation Easement is based on the principle that the title to real property can be thought of as a bundle of "sticks" or property rights. These rights include such things as the right to build a house, cut timber, farm the property, pass it on to heirs, etc. In the past, some of these rights, such as timber cutting and mineral rights, have been used, sold, and taxed separately from the remainder of the land. The Conservation Easement is based on this principle that specific land ownership rights can be separated from the entire "bundle" and donated, exchanged, or sold in a normal real estate transaction.

Federal and State law allow a great deal of flexibility in the construction of Conservation Easements. However, they must fulfill conservation purposes. These purposes include the preservation of land areas for public outdoor recreation, education of the general public, or the protection of natural habitat for fish, wildlife, plants, or similar ecosystems. The purposes may also include the preservation of a historically important land area, certified historic structure, or open space (including farmland and forestland) where such preservation yields significant public benefit.

The landowner conveys to a unit of government or a qualifying land trust an easement that incorporates certain rights so as to accomplish the conservation objective. If the purpose were to keep a wooded buffer adjacent to a popular trout stream, the landowner would convey those property rights necessary to insure that trees could be established and maintained for a set distance back from the edge of the stream. These restrictions would be incorporated in an easement (typically called a Conservation Easement) and recorded at the Register of Deeds. The organization holding the easement cannot exercise the rights conveyed by the landowner - the organization acts as a guardian of those interests.

Since such gifts are considered to be in the public interest, the federal government and the state of North Carolina have enacted favorable tax laws for such gifts. In the case of North Carolina, an individual can receive up to $250,000 in tax credits for a donated Conservation Easement. The federal government allows a tax deduction for the donation. Conservation Easements can also provide a substantial estate and inheritance tax advantage. Federal estate taxes imposed on the value of a person's assets after he or she passes away can be severe, sometimes forcing heirs to sell the land to pay the taxes. An Easement reduces the value of the taxable assets, therefore lowering the potential estate tax liability.

Donated Conservation Easements provide a substantial public benefit at little cost, while allowing the grantor to continue to use and enjoy the property. They can be a win-win gift for everyone. There are many specific considerations of any easement proposal. They can be tailored to meet specific conservation objectives and the needs of the landowner. If you would like to know more about this special kind of gift, please contact Gordon Small with the Haywood Waterways Association at 828-452-3323.

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