Many landowners love their land and want to see it stay open and free from development forever. Unfortunately many of those same folks have not taken the necessary steps to ensure their wishes will be implemented upon their passing. That's why WLT is an active promoter of estate planning, especially for owners of large agricultural and open lands. Planning for one's death is not an easy thing to do, but without it all that one has worked to build can be undone by heirs, or in court.

Every one of us as citizens of the United States is afforded a lifetime exemption from tax on our estates. In 2004, that exemption is $1,500,000.

What that means is, if the total value of all assets owned—house, land, investments, retirement accounts, etc.—is more than $1,500,000 and that person passes away this year, the heirs to the estate are subject to tax on the amount above that figure. In some cases the heirs may have to liquidate assets—including the land—in order to pay the tax due. Estate tax rates begin at 28% and increase to a maximum of 55% for the largest estates.

Even more importantly, estate planning can define the future use of your land even after you're gone. If a person wants to conserve their family's land, they can donate a conservation easement on it to WLT while they are alive. In doing so a substantial federal income tax deduction can be received and if there is an estate tax when they die, the tax due may be reduced —or avoided altogether.

It is also possible to donate a conservation easement in one's will or estate plan, to take effect upon death. In this way, the estate's executor is directed to execute the easement before the estate is valued and settled. No income tax deduction is realized, but the land will be inherited or sold as a protected property.

Similarly, land may be donated in fee simple to WLT now or in one's will or estate plan. If that happens now, the owner may opt for a "reserved life estate" allowing for the continued use and enjoyment of the property until death, at which time the land transfers to the land trust. If in the estate plan, WLT will take ownership as the estate is settled. Depending on the type of property and the donor's wishes, WLT may retain the property as a nature preserve or protect it with a conservation easement before selling it. It is also possible to direct one's executor to donate an easement before transferring the property to the land trust.

It is critical to plan for the future disposition of land resources now. Contact WLT for more information on estate planning.

Learn more about conservation easements.