Other Land Conservation Options

The Palmer Land Trust has worked primarily with conservation easements to protect land values in the Pikes Peak region. We have the legal standing and organizational authority, however, to consider other options if they provide landowners with more suitable solutions.

1. Land Donations

 a.  Gift during an Owner’s Lifetime

If a landowner lacks heirs, or does not wish to pass a property to them, and wants to insure that the land is protected forever, donating the land to The Palmer Land Trust may provide a desirable solution. A donation relieves the landowner of the responsibility to manage the land and it provides substantial income tax and estate tax benefits.

b.  Gift of a Remainder Interest

Another way to donate land involves giving a "remainder" interest to a land trust. This option enables landowners to donate the property but retain tenancy and control of it during their lifetimes. After the landowner’s death, the land trust receives title to the property. Remainder estates may designate the lifetimes of individuals other than the landowner for occupancy of the property. Remainder interests qualify for income tax deductions.

c.  Gift by Will

If a landowner wants to retain ownership, management, and control of a property during his or her lifetime yet protect the land after death, a donation by will allow this to happen.

2. Charitable Bargain Sale

Depending on a donor’s circumstances, this strategy provides income and tax benefits. If an owner of real estate sells it to The Palmer Land Trust for less than its appraised value, the difference is considered a gift and can be used as an income tax deduction.

3. Purchase of Development Rights

A purchase of development rights (PDR) is the term given to a situation in which a land trust purchases a conservation easement. The sale of development rights at full market value, even though the land trust shapes the terms of an agreement, is fully taxable. If the landowner chooses to sell these rights for less than fair market value, constituting a bargain sale, he or she will receive income and tax benefits while retaining title to the property now subject to a conservation easement.