Conservation Easement Guidelines PDF Print

RENSSELAER LAND TRUST INFORMATION AND GUIDELINES FOR DONATED CONSERVATION EASEMENTS

The Rensselaer Land Trust (RLT) is a qualified not-for-profit land trust organization established in 1987 for the purpose of protecting unique open space recreation areas, viable agricultural lands, watersheds and aquifers, significant natural habitats, and historic and culturally significant lands. The three-year strategic plan adopted by the RLT Board in 2006 places a priority on the protection of watersheds and aquifers and viable agricultural lands.  Other unique open space areas may also be considered for priority acquisition.

A conservation easement is a voluntary agreement to preserve land in perpetuity. Although filed with the deed, it does not transfer land ownership, but rather spells out a landowner’s commitment to protect the existing character of said property in cooperation with the land trust. It is a flexible document and is written to protect the land in accordance with the landowner’s wishes and the objectives of the land trust.

The RLT uses the donated conservation easement as its primary tool for land protection.  All donated conservation easements must comply with Article 49, Title 3 of the Environmental Conservation Law of New York State and Section 170(h) of the Internal Revenue Code. The IRS issued new regulations for donated conservation easements in 2006.  A prospective donor is advised to seek a qualified tax consultant for advice on the specific benefits and requirements contained in the new IRS regulations.

Conservation easements held by a qualified land trust in New York State are held “in perpetuity”.  The conservation easement donor can still own, sell, transfer, mortgage, build upon and manage the property as long as such actions are consistent with the terms and conditions of the easement. The conservation easement does not give the public any rights to the land unless such rights are included in the terms of the easement.

The principal monetary advantage for a donating a conservation easement is a tax deduction for state and federal income taxes as well as a possible reduction in your local property taxes. Tax assessments are made by local assessors based on the fair market value of the property.  Undeveloped land which has its development rights diminished by a conservation easement would logically reduce a property’s market value in most instances but this decision rests with the local assessor.  Federal and state income tax deductions for donated conservation easements must meet the guidelines for such deductions specified in the respective federal and state income tax instructions. In all cases it is best to first consult with a qualified tax consultant, accountant and an attorney versed in conservation easements to determine your specific benefits. A conservation easement may qualify as a “qualified conservation contribution” under Section 170 (h) of the Internal Revenue Code. To the extent they do, a federal income tax deduction may be available.  Each donor must consult with his or her own tax adviser to make this decision. No representative of RLT is authorized to make representations on behalf of the Land Trust regarding the availability or amount of any federal or state tax deduction. 

Each donor will be required to sign a statement that acknowledges:

  • that no representative of the RLT nor any person action on its behalf has made any representations bout the federal or state tax implications of a proposed donation.
  • that at the time of the easement donation the donor acknowledges that the donated conservation easement is given freely and exclusively for conservation purposes and that they were not (are not) required to do so under any condition or requirement for a subdivision approval, federal or state permit requirement or any legally binding agreement.
RLT will not accept a donated conservation easement that does not meet the qualifications for such under Section 170 (h) of the Internal Revenue Code even if no federal or state deduction is sought by the donor.
RLT will not sign the donee acknowledgement on IRS From 8283 unless all parts have been completed by the donor and the qualified appraisal and donor statement are attached.

APPRAISALS

 RLT requires an appraisal of the fair market value of the value of all donated conservation easement regardless of the value.

It is the donor’s responsibility to provide to the land trust an appraisal of the value of the conservation easement to be donated. This appraisal must conform to and meet the requirements of the Internal Revenue Code 170(h).  The donor is urged to seek the services of a New York State Certified Appraiser who has experience in appraising donated conservation easements and is knowledgeable with both the state and federal requirements for such. RTL can provide the names of appraisers who meet these qualifications.  The specific choice of an appraiser is up to the donor.

RLT Conservation Easement Acceptance Criteria

The Rensselaer Land Trust recognizes the unique responsibility incurs in accepting a donated conservation easement over a landowner’s property.  Both State and Federal regulations require that a land trust hold a conservation easement in perpetuity. The conservation easement “runs with the land” and continues to exist with each new owner of the property. We consider it a partnership in preservation and thus must treat each easement as a unique document that establishes what is important and special about the property as well as the stewardship requirements it mandates.

RLT annually monitors its easement properties to ensure that the requirements of the conservation easement are being met.  RLT will provide advice to the donor regarding any area of concern the property owner might have regarding conditions both on and off the property that may have a negative impact on the terms of the easement. A conservation easement is enforced by the organization to which it is donated, by court action if necessary.  While this action is rarely undertaken with original donors it is sometimes required if the property changes ownership and the new owner fails to adhere to the terms of the easement. This is part of the responsibility a land trust accepts when it takes a donated easement in perpetuity. Many of these situations can be avoided by carefully written easements, annual stewardship monitoring and a respectful partnership relationship between the property owner and the land trust. The voluntary donation to RLT’s Stewardship Endowment Fund is to help offset the cost of annual monitoring and, if necessary, legal defense cost of the easement.

Conservation Easement Criteria:

The Board of Directors of the Rensselaer Land Trust has adopted the following criteria for accepting a donated conservation easement:

  • The property under consideration must contain one or more attributes identified by RLT for protection.  For example: a high quality wetland area on prime agricultural lands.
  • The property is of sufficient size and character to retain its special attributes over time.
  • The donation of the conservation easement is not the result of a sub-division requirement or a wetland mitigation settlement or permit nor any other legally binding requirement of a third party.
  • The donor agrees to pay all costs associated with the donated conservation easement (to include by not limited to: surveys,  appraisals, baseline report, title insurance, legal fees and filing fees).
  • The donor agrees to make a voluntary minimum contribution to RLT’s Stewardship Endowment Fund of $10,000 to cover the costs of annual monitoring and legal defense if required.  This donation may, at the discretion of the RLT Board, be spread out over five years.
  • Unless the donor otherwise agrees, RLT will keep all easement discussions confidential until the time the conservation easement is filed in the county clerk’s office.

The Easement Process

A conservation easement transaction can be critical to a donor’s estate planning, tax purposes, or in the development of a real estate transfer. RLT will not accept conservation easement projects that are the result of a legal action, permit requirement or any other third party agreement.  In order for an easement to be accepted by RLT the Conservancy must be involved in the development of the terms at the inception of its discussion. It is vital that RLT be contacted as early possible in the consideration of donating a conservation easement. Listed below is the general sequence of events leading up to an executed conservation easement.
Initial Contact:
Upon notification from a property owner that they are considering a donated conservation easement to RLT a contact form will be developed which tracts the easement process and a site visit will be arranged to meet with the donor and inspect the property that will be the subject of the easement. RLT staff and or one or more Board members may participate in this visit.
Site Analysis:
RLT will conduct an analysis of the proposed easement property and determine if it meets the criteria for an easement with RLT and what specific development rights need to be a acquired.  The donor will be assigned a contact person for RLT who will monitor the easement project and act as a liaison between the donor and RLT. At this stage a preliminary determination will be made by the RLT Land Acquisition Committee to proceed with this project.
Survey and Appraisal:
If the RLT Land Acquisition Committee agrees to proceed with the project the donor will be advised to obtain a property survey that includes a description of the metes and bounds as well as a map that indicates the current restrictions (utility easements for example or other limitations) and adjacent property owners.
A property appraisal will be made by a state certified appraiser with experience in conservation easement appraisals and knowledge of both federal and state income tax regulations governing such appraisals.
Baseline Report:
RLT requires a Baseline Report which is a physical and photographic of the area covered by the easement which details the land characteristics and features that need protection by a conservation easement.  This report will either be done by RLT staff or be contracted out.  The costs associated with this report will be paid by the donor.
Draft Easement:
Once the survey, appraisal and baseline report are completed, reviewed and accepted by the RLT Land Acquisition Committee a draft conservation easement document will be forwarded for comment to the donor. Additions, deletions, or other amendments to the draft by the donor will be accepted, reviewed by the RLT Land Acquisition Committee and, if approved, a final conservation easement document will be reviewed and approved by the RLT Board and forwarded to the donor for signature.  It is important to stress that the donor should, in all cases, seek qualified, professional counsel from an accountant, estate planner and an attorney familiar with conservation easements before signing this document. Upon receipt of the signed conservation easement the RLT Board will vote on accepting the easement.
Executing and Recording the Conservation Easement:
It is at this point that the RLT will request that the donor make a voluntary contribution to the Stewardship Endowment Fund cover the costs of of annual monitoring and of possible enforcement of the easement terms in the future. This endowment can be considered a landowner’s insurance policy that will ensure the long-term protection of his/her donation.
The finalized conservation easement is signed and notarized by both parties and recorded with the County Clerk.  In addition, as required by Article 49, Tile 3 of the Environmental Conservation Law of New York State, a copied of the recorded easement will be sent to the NYS Dept. of Environmental Conservation (DEC) who will record it for their records and assign a records number to the document.  This final step completes the process.
The completion of the easement process does not end the relationship of the donor and RLT.  It is RLT’s hope that the donor will consider himself/herself a partner with RLT in the preservation of his/her property as well as an advocate for the preservation of other worthy properties in Rensselaer County.  RLT will annually contact the donor to arrange a site visit and invite the donor to participate as well as seek advice or guidance from RLT regarding issues (such as invasive species management) that affect the easement property.
Please feel free to contact the Rensselaer Land Trust Office if you have any questions regarding donating a conservation easement.  Our telephone number is
518 659-5263, and our email address is: This e-mail address is being protected from spambots. You need JavaScript enabled to view it