Seminar is Successful

More than 50 attorneys, accountants, landowners, and others interested in land preservation, attended a seminar held on May 16 and May 18. Jointly sponsored by the Northern Neck Land Conservancy and the Middle Peninsula Land Trust, the program offered detailed information on land preservation agreements and their benefits.

The May 16 session was held at the Glenns Campus of the Rappahannock Community College (RCC). Mary Helen Morgan, president of Middle Peninsula Land Trust, served as moderator. The May 18 session, held at RCC Warsaw campus was led by Mary Louisa Pollard, President of the Northern Neck Land Conservancy. Dr. Elizabeth Crowther, RCC president, welcomed participants at both programs on behalf of the college.

Entitled, "Land Preservation Agreements, Requirements and Benefits for Tax Planning: Strategies that help your land work for you", the seminar focused on the conservation easement, a simple legal agreement between a landowner and a government agency or a non-profit conservation organization which places permanent limits on the development of the property.

Catherine Scott outlined the special characteristics of conservation easements:
1) They are totally voluntary
2) They keep property in private ownership (and on tax rolls)
3) They are perpetual
4) They protect a variety of landscapes, i.e., agricultural, forest land, historic, etc.
5) They are individual

She talked about the landowners who donate conservation easements, “They love their land, first and foremost. They also realize that there are significant tax and estate benefits and, for some, it is the only way they are able to pass their land on to their heirs.”

Scott is Director of Land Conservation for Piedmont Environmental Council and a member of the DC bar. She asked, “How many things can you do in life that are for forever?” She also described the sense of pride found in Virginia’s Piedmont where landowners display signs identifying their property as being under protection of conservation easement.

Rebecca McCoy, CPA, whose practice centers on estate and income tax planning and use of long-term charitable gifting programs to maximize tax benefits, discussed specifics of tax laws and gave several examples of calculations for savings with donation of easements.

She explained that the value of the easement donation is calculated using an appraisal before and after an easement is placed. She cautioned that not all appraisers are experienced with this complicated procedure. Landowners could find their deduction disallowed if the valuation can not be adequately supported.

Estie Thomas, from the Virginia Outdoors Foundation, covers the Northern Neck and Middle Peninsula .  VOF is the largest single holder of conservation easements in the state, with well over 250,000 acres protected in some 1,500 easements.  

Thomas reviewed the history and philosophy of VOF.  She stated that processing of easements is high already this year, and her expectation is that it will be record-breaking for the organization.

Landowners wishing to begin the process should not wait, but start immediately, especially for the 2005 tax year.  Usually it requires 4 – 6 months to develop and prepare agreements, which then need to be submitted to the VOF Board of Trustees about a month prior to meetings. She mentioned possible tax law changes as a result of congressional committee recommendations, which may adversely affect benefits to easement donors.

 The speakers answered questions during their presentations and then formed a panel for additional questions.  Questions and answers indicated intense interest in land conservation agreements and the complexity of associated issues.   

For additional information call the Middle Peninsula Land Trust at (804) 758-2264 or the Northern Neck Land Conservancy at (804) 435-2814.

Catherine Scott, Becky McCoy,  Estie Thomas, Mary Louisa Pollard, Sissy Crowther

Northern Neck Land Conservancy, Inc. | PO Box 125| Lancaster, Virginia 22503
804.462.0979
nnlc@kaballero.com
We are a nonprofit corporation under Section 501(c)(3) of the Federal Internal Revenue Code.