Land Conservation Strategies: Landowner's Options for Protecting Family Lands
Land Conservation Strategies:Resource Protection Glossary of Terms
BARGAIN SALE -- Sale of a property to a tax exempt organization for less than the fair market value.
BASELINE DOCUMENTATION -- Information and documentation to give evidence to the condition of land at the time a conservation easement is made.
BEQUEST -- A gift of money, real property, or conservation easement in a person's will; can secure conservation of property and take property value out of calculation for estate tax.
CAPITAL GAINS -- profit from the sale of land or other capital asset in excess of cost, or other basis.
CHARITABLE CONTRIBUTION -- The tax deductible transfer of money or property to a qualified charitable organization.
CONSERVANCY -- An organization specifically set up to promote and affect conservation of natural and historic resources.
CONSERVATION -- Careful preservation and protection of resources, usually referring to land and related natural resources, includes planned management of resources to protect their future integrity and value.
CONSERVATION-BASED DEVELOPMENT -- a development plan for a property that frequently incorporates the use of conservation easements and permits landowners to undertake a specified and limited amount of future building or development that does not interfere with the land's conservation value.
CONSERVATION EASEMENT -- A legally-binding agreement between a property owner and an organization such as a conservancy which protects natural resource values of the property by restricting selected uses. The property remains in private ownership and does not need to be opened to the public. Tax benefits may apply to the donor.
DEED RESTRICTION -- a written stipulation contained within a deed that restricts certain future uses of the property generally inserted at the time of transfer. A deed restriction may include restrictions similar to those contained within a conservation easement. However, enforcement may only be carried out by the prior owner or other parties to the transaction and the restrictions may be canceled at any time by mutual written agreement.
DONOR -- A person who makes a charitable contribution to a qualified organization.
ENDOWMENT -- A permanent stewardship fund established to support costs of maintaining a property or defending and monitoring a conservation easement. Permanence is assured by restricting withdrawals from the principal and relying on investment income for annual cost.
ESTATE TAXES -- The combined state and federal taxes levied against one's total estate including real property at death, payable within nine months and before distribution to the heirs. For any estate worth more than the allowable exemption ($675,000 in 2001), federal taxes can be as high as 55%. Under the federal tax reform act passed in April 2001, the exemptions and rates are scheduled to change over the next several years to reduce the amount of estate taxes, but for large estates tax rates will continue to be substantial in the years to come.
GlFT IN FEE SIMPLE -- Transfer of a property by deeding it directly to a charitable organization for conservation or other purposes. Tax benefits may apply to the donor.
QUALIFIED CHARITABLE ORGANIZATION -- An organization which has been recognized by the Internal Revenue Service (IRS) as a 501(c)(3) organization for the public benefit.
STEWARDSHIP -- Caring for and managing resources with good conservation practices to ensure their protection; a philosophy of land management which focuses on caring and preservation rather than control.
