Introduction
This section is intended to provide an overview of the most common techniques for voluntary land protection. It should not be used as the only reference in making a decision. Landowners are encouraged to seek guidance from a tax attorney or accountant in order to determine the most suitable option. The Wellfleet Conservation Trust can identify attorneys, surveyors, appraisers, accountants, and land planners familiar with local conservation techniques.

GIFTS OF LAND

Outright Donation (Fee Simple Transfer)
Giving the land to a nonprofit conservation organization or to a government agency is the simplest way to protect land. It is only necessary to obtain acceptance from the agency or organization to which the land will be donated, prior to deeding the land. A gift insures long-term protection of the land. The donor receives tax benefits in the form of federal income tax deductions, potential estate tax benefits, and relief from property taxes. The donor is relieved of management responsibilities, and automatically absolved of liability associated with any trail use.

Donation by Will (Bequest
A gift of land made through a will entitles the donor to retain full use of the land during his or her lifetime and assures that it will be cared for in the future. It is advisable to discuss the gift with the agency or organization prior to inclusion in a will, to insure a plan for the care of the land. The donor is responsible for real estate and income taxes for the property during his or her lifetime. But removing the land from an estate will reduce inheritance taxes.

Donation with a Reserved Life Estate
A donation with a reserved life estate may be made to a government agency or conservation organization. The donor retains the use of the land during his or her lifetime, and the lifetimes of specified family members. A reserved life estate insures that the land is protected in perpetuity, yet allows the donor to reside on it and maintain the land. The tax advantages with a retained life estate are less that those with an outright donation.

SALE OF LAND

Bargain sale
For a landowner interested in conservation who cannot donate land directly, a bargain sale of property to a land trust insures the land will be protected. With this option, the land trust purchases land at less than full-market value. The benefit to the landowner is twofold:
1. the sale produces needed income and,
2. he/she 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.

Sale at Fair Market Value
Sale at fair market value is the sale of property at the price a knowledgeable buyer would pay for the land. Most conservation organizations are not able to purchase land at full value due to insufficient funds. If the land is sold at full value and has appreciated in value since its purchase, the seller will be liable for income tax on the capital gain. This can affect the net profit from the sale. There are no charitable deductions associated with a sale at full value.

CONSERVATION RESTRICTION

Donation of a Conservation Restriction
A conservation restriction (or CR) is a voluntary, legal agreement between a landowner and a land trust, such as the Wellfleet Conservation Trust, or a government agency, that limits a property's uses in order to protect its conservation values.
When you own land, you also hold many rights associated with it, such as the right to build structures. When you create a conservation restriction, you agree to modify or give up some of those rights. For example, you might give up the right to build more houses, while retaining the right to keep a view open or create gardens. Future owners also will be bound by the terms of the agreement. In exchange for giving up the right to develop the land, the assessed value of the property is typically greatly reduced, substantially cutting down on the property tax due on the land every year. Also, a charitable deduction is available for taax purposes the year that the CR is donated. The conservation restriction is a very flexible tool, and can be an exceedingly useful tool in estate planning.
The conservation restriction (called a "conservation easement" in some states) is drafted in a way to protect critical open space resources and meet the financial and personal needs of the landowner. In some cases, a conservation restriction may apply to just a portion of the property, leaving the option of development open for the remaining part. Most restrictions are intended to be permanent.
The holder of the restriction takes on the responsibility and legal right to enforce the agreement. If a future owner or someone else violates the agreement (perhaps by erecting a building the restriction doesn't allow) the holder will work to correct the violation.Owners of highly valued property may also use the restriction to lower the value of their estate for estate tax (or inheritance tax) planning. The combined federal and state estate tax can be as high as 55%, sometimes forcing children to sell the property simply to pay off the "death taxes". A conservation restriction can lower the estate tax, and perhaps provide the way for heirs to retain title to a cherished family asset. Estate planning with the aid of professional advisors is critical

Sale of a Conservation Restriction
A conservation restriction is also sometimes sold by the landowner to the acquiring entity. All of the above comments regarding a donated CR still hold, with the exception that no charitable tax deduction is available, unless it is a bargain sale of the CR.