Minnesota is full of incredible natural beauty, and it has remained that way because many have chosen to prioritize conservation efforts over the years. One way that land owners can protect the natural beauty of Minnesota is through what’s known as a conservation easement. We’ve talked about different types of easement agreements on this blog in the past, but what exactly is a conservation easement, and why would someone pursue one in Minnesota? We answer those questions on today’s blog.
The Basics Of A Conservation Easement
An easement is an agreement between two parties that outlines how one entity can access someone else’s property despite the fact that the owner still maintains possession of the land. For example, you may have an easement with a neighbor who has a shared driveway that runs through your property, or you may have an easement agreement with a utility company that has equipment on your land. These agreements allow these other parties to come on your land for a specific purpose.
A conservation easement essentially grants limited rights to your land to the government for conservation purposes. As a landowner, you can offer some of your land to the state of Minnesota for the establishment of a conservation easement.
In most cases, these conservation easements are perpetual or permanent, meaning you can’t go back on your decision once an easement has been established.
Why Would Someone Agree To A Conservation Easement?
Now that we understand what a conservation easement is, it begs the question, “why would someone hand over access to their land to the state?” Landowners can benefit from the establishment of a conservation easement in a few different ways:
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Payment - The landowner may receive fair value payment for the access rights being purchased.
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Tax Benefits - You can earn a significant tax reduction by donating property as part of a conservation easement. Donating a portion of your land to establish a conservation easement in your will can also greatly reduce an estate tax, reducing a potential tax burden on your heirs.
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Ensuring It Remains Natural - A conservation easement persists despite the death of the property owner or the sale of the property, so someone may wish to establish a conservation easement to ensure that a developer or business will not be able to completely overhaul the natural beauty of the land.
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Lasting Legacy - Some people like establishing a conservation easement so that they know future generations will be able to enjoy the natural beauty of a property for years to come.
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Protecting Wildlife - A conservation easement can ensure that animals and plants can continue to thrive in a biome without fear of major manmade environmental changes.
For more information about conservation easements, or to better understand the unique tax benefits you stand to receive if you move forward with a conservation easement, reach out to the team at Commercial Partners today at (612) 337-2470.