CCLCLogo
CCLCLogo P.O. Box 884 * Chippewa Falls, WI 54729

Conservation Easement Intro

How Does a Conservation Easement Work?

Qualifying for a Federal Income Tax Deduction

A Conservation Easement Can Significantly Reduce Estate Taxes

Donating a Conservation Easement by Will

Your Next Step - Available Options


Mission
To Protect and Preserve Natural and Scenic Chippewa County Lands.

HOME

A Conservation Easement Can Significantly Reduce Estate Taxes

If you own land with substantial value, you may not be able to pass it on intact to your heirs. When you die, your children may find that the federal estate tax - which is based on the land's current fair market value and is levied at rates as high as 55% - is in the hundreds of thousands or millions of dollars. Selling all or part of the land for development may be the only way to pay the estate tax.

But if you place an easement on the land restricting future development, it's fair market value will, in most cases, be reduced. When you die, this reduced value will result in lower estate taxes. An easement's effect on estate taxes is usually more important to landowners with seizable estates and substantial real estate holdings, since tax laws generally have the effect of exempting the first $600,000 worth of assets from estate taxes. However, today's real estate market can easily push a property's value well above that without the landowner realizing it.