The OWLT provides interested landowners the opportunity to preserve their land through a variety of voluntary conservation options. Before deciding which option best suits your land protection interests, it is important to talk with your attorney and financial advisor. Here are some of land protection ideas you might want to discuss with them.

CONSERVATION EASEMENT
A conservation easement is a voluntary legal agreement between a landowner and the OWLT that protects the conservation values of a piece of land by permanently limiting its present and future uses. This uniquely flexible conservation tool lets a landowner retain ownership and use of their property. An easement can be created to protect all or part of a property that has natural, agricultural, scenic or wildlife habitat resources. Millions of acres have been saved in this way.

Land trusts are among several non-profit land conservation organizations traditionally granted conservation easements by landowners who have a love of the land and an interest in protecting it in perpetuity. Below are common questions asked about conservation easements and answers to the questions. Again, interested landowners should consult with their own financial and legal advisors to decide if this option meets their needs.

Q.   Who is allowed by law to hold a conservation easement?
A.   A qualified nonprofit, tax-exempt conservation organization - such as a land trust or conservancy-may hold a conservation easement, as can federal, state or local government entities.

Q.   Who decides what restrictions govern a conservation easement?
A.   The landowner and the land trust or other nonprofit, tax-exempt conservation organization decide together what's needed to protect the land's conservation value while, at the same time, meeting the financial and personal needs of the landowner and his or her family. This is a land protection option known for its flexibility. For example, an easement on property with rare wildlife habitat might limit for further prohibit development of any kind while a farmland easement allowed continued farming and the building of limited agricultural structures. Land subject to a conservation easement remains privately owned and managed by the landowner, but enforcement of the easement restrictions becomes the permanent responsibility and legal right of the land trust.

Q.   Does a conservation easement grant public access to land?
A.   No. However, public access to protected land can be a stipulation of a conservation easement agreement if mutually acceptable to the landowner and the land trust.

Q.   What effect does a conservation easement have on a landowner's ability to sell, develop or pass the land to his or her heirs?
A.   While restrictions defined in a conservation easement document run with the property forever, land protected in this way can be sold, passed to heirs or otherwise transferred at any time. Land-use restrictions may affect only certain portions of a property, significant woodland or wetland areas for example, but allow development on the remainder. Transfer of ownership does not affect the integrity or enforceability of the permanent easement. The landowner who establishes a conservation easement ensures that his or her careful stewardship of the land is a legacy that lasts.

Q.   What are the financial or tax benefits of donating a conservation easement?
A.   Donation of a conservation easement to a qualified conservation organization is treated as a charitable deduction for tax purposes as long as it meets federal tax code requirements.

Federal and state income tax benefits vary with each easement but, in general, to qualify as a deduction, the easement must serve conservation purposes by preserving natural habitat, historic sites, unique scenic landscapes, wildlife corridors or connections to other protected parcels, public recreation or education areas, or open spaces near land under intense development pressure.

Federal estate taxes can be affected by donation of a conservation easement. Since that easement reduces the market value of the property, its development of potential is likewise reduced, lessening the impact of inheritance taxes and allowing the heirs to retain property that might otherwise have to be sold. Reduction in the fair market value of land through a conservation easement also allows a landowner to give more land away in any one year without creating a gift tax obligation or may help reduce the amount of gift tax owed. Land subject to a conservation easement can qualify for a reducing property taxes on the land. Under Wisconsin law, local property tax assessors are required to consider a conservation easement when setting the taxable value of the property.

Q. How is the value of a conservation easement determined?
A. The value of the gift, for tax purposes, is the difference between the property's full market value before and after donation of the conservation easement established by a qualified land appraiser.

Preservation in Perpetuity Protecting land with a conservation easement provides a guarantee of accountability. Unlike simply attaching deed restrictions to a property title, donating a conservation easement provides the certainty that a landowner's desire to preserve the land's conservation values is honored far into the future by an organization dedicated to the principles of saving precious resources. Costs to Landowners of Donating a Conservation Easement Costs associated with a conservation easement donation typically involve three items. First, a survey is needed to determine and show the boundaries of the area restricted by the conservation easement. Second, an appraisal is required if the landowner is planning on using the conservation easement as a charitable contribution for income taxes. Third, landowners donating a conservation easement often establish a stewardship fund used to cover the expense of monitoring, enforcing compliance and legal defense of the easement.

LAND DONATIONS
Donating land to the OWLT is one of the finest legacies property owners can leave to their community. This may be the best protection strategy for conservation-minded landowners who do not wish to pass the land to heirs; have no further use for a piece of property; have highly appreciated property; want to reduce estate tax burdens, or wish to be relieved of the management of a parcel of land. Landowners who donate land to the OWLT receive an income tax deduction for the full-market value of the land. The donation may reduce federal estate tax liabilities and will eliminate the responsibility of property taxes. Donated properties without conservation value can be sold to support the conservation work of the OWLT.

LAND PURCHASES
Occasionally, the OWLT will pay full value for land it considers highly significant and extremely threatened by development. Conservation-minded landowners who use this method to sell their land gain peace of mind knowing it will be protected.

BARGAIN SALE
For a landowner interested in conservation who cannot do an outright donation of land, a bargain sale of property to the OWLT insures the land will be protected. With this option, the OWLT purchases land at less than full-market value. The benefit to the landowner is twofold: (1) the sale produces needed income and, (2) they can claim the difference between the sale and full-market value as a tax-deductible donation. More intangible but equally important, landowners can be assured that valuable land and water resources will be protected.

LIMITED DEVELOPMENT
A combination of land protection strategies that include limited development may be an effective approach to managing some properties. This can mean dividing a parcel of land between areas protected by conservation easements and areas where reasonable development is allowed. The landowner can generate needed cash by selling or continuing to use a part of the land for profit and, at the same time, guarantee the protection of sections with conservation value.