STEP-BY-STEP GUIDE TO CONSERVATION EASEMENT
If you are interested in donating a conservation
easement to KHLT, these steps will be followed:
1. Evaluate property: KHLT representatives
will visit your property to evaluate its ecological,
recreational, or scenic values and make a preliminary
determination as to whether your property meets KHLT's
criteria for accepting easements. If your property does
not meet KHLT's criteria, we may suggest other options.
2. Discuss landowner's objectives and review
alternatives: A KHLT representative will meet with
you at the KHLT office or your home to discuss your
objectives for the property and review your options for
uses, restrictions, resource protection, management, and
the costs associated with completing the easement. You
should review those options with your personal tax and
legal advisors.
3. Request KHLT Board approval: If you decide
to go forward with a conservation easement for your
property, a Land Trust representative will present a
review of the property and the owner's wishes for the
easement's restrictions to the KHLT Board of Directors
at the next regularly scheduled board meeting for formal
board approval to proceed.
4. Check title and mortgage: KHLT requires
proof of good title and notice if there is an existing
mortgage on the property. If there is a mortgage, the
lender must subordinate its rights in the property to
KHLT's rights as the easement holder in order for the
easement to qualify for an income tax deduction. Third
party mineral rights must also be subordinated.
5. Prepare baseline documentation report:
Following Board approval, you or a mutually agreed upon
consultant will begin preparation of the "Baseline
Documentation Report" to describe the condition of the
property at the time of the donation.
6. Draft Easement: KHLT representatives and
legal counsel prepare a draft easement document that
reflects your objectives. The easement document is then
reviewed by you and your attorney. Provisions relating
to your objectives may be revised at this time. A legal
description of the precise area to be covered by the
easement is required. A formal survey is usually not
required.
7. Obtain an appraisal: If you or your advisor
determines that the easement donation will qualify as a
charitable donation, you must select and hire an
appraiser to analyze the market value of the property
before and after the easement. KHLT can provide you with
a list of appraisers who have expressed an interest in
appraising easements.
8. Sign easement: After a final review of the
documents, you and KHLT's president and secretary will
sign the easement and baseline documentation report. You
then record the easement in the appropriate recorder's
office.
9. Submit Form 8283 to the IRS: You must
attach IRS 8283 (for "Noncash Charitable Contributions")
to the income tax return that you submit for the year in
which the easement was donated. |
