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Bequest

I take good care of my land, and I want to live here all my life. But who will take care of my land after that?

If your land has high-quality natural resources that you want protected beyond your lifetime, consider bequeathing it to a conservation group.

Even if your land has little or no natural resource value—such as a commercial lot—you can bequeath it to a like-minded conservation group. They can use its sale proceeds or annual income to fund other conservation efforts.

Legal and tax benefits

A bequest of land for conservation offers these advantages:

• It’s a straight-forward process—simply include the land bequest (devise) and recipient in your will.
• A bequest enables you to decide what will happen to your land. If you die without a will, state law determines how your assets will be disbursed.
• The bequest does not affect your use of the land during your lifetime. The land is still completely yours.
• A bequest can be changed if you later need an asset to cover personal expenses or choose a different beneficiary.
• Your bequest may reduce future estate and inheritance taxes. However, it does not qualify you for income tax savings available through several other options.

Talk it over

Though the paperwork is simple and can be done without the beneficiaries’ knowledge, always discuss land bequests and restrictions with potential conservation beneficiaries in advance.

Here are some key issues to clarify together:

• Bequeathing land “for conservation” can mean different things for different land and different people—from selling the land and using the proceeds for other conservation projects to preserving and managing the land according to very specific guidelines. Talk with your intended conservation recipient—perhaps even walking your land together—to make sure this partner understands and can fulfill your goals.
• Unlike a cash bequest, land gifts can place significant responsibilities and costs on the recipient—especially if the land has no income-producing potential and comes with restrictions on its use, management or future sale. In such cases, consider a bequest of funds to ensure that your conservation partner can manage the property as you intend.

Find more details about the financial and tax impacts of conservation protections.

reprinted from Landowner’s Options, © 2007, Iowa Natural Heritage Foundation