A conservation easement (or conservation restriction) is a legal agreement between a landowner and a land trust or government agency that permanently limits uses of the land to protect its conservation value. Such an arrangement allows landowners to continue to own and use their property, sell it, or pass it on to heirs.

When a conservation easement is donated to RLC, the landowner gives up some of the rights associated with the land. For example, a landowner might give up the right to build additional structures, but retain the right to grow crops. Future owners would be bound by the terms specified by the easement. RLC would be responsible for making sure that the terms of the easement were followed.

Conservation easements offer great flexibility. An easement may apply to a portion of the property and need not require public access. For example: an easement on property which supports rare wildlife habitat might prohibit development; an easement on agricultural property might permit continued farming and the construction of additional agricultural structures.

Landowners usually donate easements, but sometimes conservation easements are sold. Easements may qualify as tax-deductible charitable donations if they benefit the public by permanently protecting important resources and if they meet other federal tax code requirements. The amount of the donation is the difference between the land’s value with the easement and the land’s value without the easement.

Placing an easement on property may also result in property tax savings.

A conservation easement may be essential for passing on land to heirs when it helps lower estate taxes. By removing the potential for development, the easement lowers the land’s market value, resulting in lower estate tax. Whether the easement is donated during life or by will, it may make a difference to the heirs’ ability to keep the land intact.