Your land is a cherished legacy, but without proper planning, estate taxes could make it difficult for your heirs to retain ownership.
Land Protection Solutions
Explore practical ways to reduce tax burdens and preserve your land, including conservation easements, charitable land gifts, and trust establishment for lasting protection.
Conservation Easements
- Permanently reduce development potential, lowering taxable land value.
- Can be donated during your lifetime or by bequest.
Outright Land Gifts
- Donate land to a conservation organization and claim a charitable income tax deduction.
Trust Establishment
- Establish trusts (e.g., Charitable Remainder Trusts) to ensure income while conserving the land.
Taxpayer Relief Act of 1997 (Section 2031(c))
Allows heirs to exclude up to 40% of the land’s value (capped at $500,000) from estate taxes if it is protected by a conservation easement.
Requirements: Land must have been owned by the decedent or family for at least three years prior to death.
Under the new law, the basic exclusion amount for an estate tax return for a 2019 date of death increases to $11,400,000, before taking into account the necessary inflation adjustment.
Why Estate Taxes Matter
- Land is taxed at its “highest and best use,” often ignoring its current use, increasing the tax burden.
- Taxes are due nine months after the owner’s death, requiring heirs to act quickly.
Need Help?
Ausbon Sargent encourages you to talk with your family about the future of your land. Then, consult your attorney and a conservation organization such as Ausbon Sargent.
A good resource on tax policy is the Land Trust Alliance website at www.landtrustalliance.org.
If you are interested in learning more, please contact the Ausbon Sargent office at (603) 526-6555.