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Conservation Options
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Berkshire Natural Resources Council employs a variety of strategies to help landowners meet their goals of protecting land in ways that take into consideration both land conservation and financial estate-planning objectives. There is a host of options for landowners who wish to preserve the quality of their land. Some of the most common ways in which the BNRC works with families to protect land are arranging conservation restrictions and gifts of land, helping families convey land to third parties such as state conservation agencies, and providing general information and assistance to landowners. Because the Council is a charitable organization, many of the strategies we employ may result in tax benefits.
Conservation Restriction Agreements
A conservation restriction (also known as a conservation easement) is a restriction placed on the use of a parcel of land. Qualified land conservation organizations, such as the Resources Council, as well as certain governmental agencies, are eligible holders of conservation restrictions. While the holder of the restriction monitors and upholds the terms of the agreement, the donor remains in full ownership of the property. The restriction is permanent and the terms of the agreement remain even if the land changes ownership. The owner is free to live on this land, to sell it, or to will it to his heirs. The value of the property has been reduced by this process (by prohibiting development), which may lead to tax benefits. Click here to see an example.
Gifts in Fee Simple
Often when a family no longer wishes to carry the burden of managing a parcel of land and wants to see the land preserved rather than developed, they choose to donate it to a charitable institution. The BNRC has the ability to manage protected land and might be willing to accept such a donation. At times, with the donor's blessing, the BNRC may convey the land to a state conservation agency. Click here to see an example. On rare occasions, an owner may donate non-conservation land to the council with the explicit understanding that the property may be sold and the proceeds dedicated to conservation purposes. such properties are known as "trade lands".
Assessing Land Holders' Conservation Options
The BNRC often helps families who wish to sell land or a conservation restriction to a state agency. The Council knows these agencies and can help families navigate the bureaucratic shoals. Many Agricultural Preservation Restrictions on farmland in the Berkshires have been conveyed to the state with the assistance of the BNRC. Click here to see an example.
Pre acquisitions
Not infrequently, the state and a landowner are ready to close a deal, but state funding is temporarily unavailable. Under some circumstances, the BNRC can "pre-acquire" the land. In these cases, the Council will buy the land, hold it, and then sell it to the pertinent state agency. This provides a financial bridge that helps families meet immediate needs, and at the same time assures protection of the property. Click here to see an example.
Remainder Interests and Bequests
The BNRC can help to arrange and/or accept the donation of a remainder interest. With the donation of a remainder interest to charity, the donor reserves the right for himself and for any other designated life tenants to live on the property for a specified number of years or until the donor's death, when full occupancy is transferred to the charitable organization. In this situation, the owner remains responsible for taxes and maintenance until full ownership is transferred to the charity. The landowner may also choose to donate land by bequest, leaving the parcel to a charitable organization in his will. This allows the landowner to remain on his land and use it as he pleases until his death, when the land is transferred to the charitable organization. Click here to see an example.
Chapter 61 Enrollment
Massachusetts has adopted three related tax classification measures (Chapter 61, 61A, and 61B), which reduce property taxes for qualifying parcels of forest land, agricultural and horticultural land, and recreational land. While not strictly land conservation programs, Chapter 61 enrollment can help ease a family's financial burden, by reducing property taxes in exchange for term no-development commitments. The program is administered by municipalities, but the BNRC is pleased to provide general information to landowners interested in enrolling in one of these programs and to those interested in learning about other methods which make more sophisticated use of opportunities provided by the Internal Revenue Code. For more detailed information on Chapter 61 please visit Mass Woods at: http://www.masswoods.net/
While we are not lawyers or tax advisors, and we always recommend that families seek independent professional counsel, we do have over thirty years of experience in the field of land conservation. Our experience and connections are often invaluable in helping families craft strategies for review with professional counsel. All inquiries are confidential and the Council does not charge any fees for services.
The BNRC actively partners with local land trusts and environmental organizations in the Berkshires. For inquiries outside of Berkshire County, the Land Trust Alliance maintains a site called Find a Land Trust , which provides links to land trusts nation-wide.