 STEP-BY-STEP GUIDE TO CONSERVATION EASEMENT
If you are interested in donating a conservation easment to KHLT, these steps will be followed:
1. Evaluate property: KHLT representatives will visit your property to evaluate its ecological, recreational, or scenic values and make a preliminary determination as to whether your property meets KHLT's criteria for accepting easements. If your property does not meet KHLT's criteria,we may suggest other options.
2. Discuss landowner's objectives and review alternatives: A KHLT representative will meet with you at the KHLT office or your home to discuss your objectives for the property and review your options for uses, restrictions, resource protection, management, and the costs associated with completing the easement. You should review those options with your personal tax and legal advisors.
3. Request KHLT Board approval: If you decide to go forward with a conservation easement for your property, a Land Trust representative will present a review of the property and the owner's wishes for the easement's restrictions to the KHLT Board of Directors at the next regularly scheduled board meeting for formal board approval.
4. Check title and mortgage: KHLT requires proof of good title and notice if there is an existing mortgage on the property. If there is a mortgage, the lender must subordinate its rights in the property to KHLT's rights as the easement holder in order for the easement to qualify for an income tax deduction. Third party mineral rights must also be subordinated.
5. Prepare baseline documentation report: Following Board approval, a mutually agreed upon consultant will begin preparation of the "Baseline Documentation Report" to describe the condition of the property at the time of the donation.
6. Draft Easement: KHLT representatives and legal counsel prepare a draft easement document that reflects your objectives. the easement document is then reviewed by you and your attorney. Provisions relating to your objectives may be revised at this time. A legal description of the precise area to be covered by the easement is required. a formal survey is usually not required.
7. Obtain an appraisal: If you or your advisor determines that the easement donation will qualify as a charitable donation, you must select and hire an appraiser to analyze the market value of the property before and after the easement. KHLT can provide you with a list of appraisers who have expressed an interest in appraising easements.
8. Sign easement: After a final review of the documents, you and KHLT's president and secretary will sign the easement and baseline documentation report. You then record the easement in the appropriate recorder's office.
9. Submit Form 8283 to the IRS: You must attach IRS 8283 (for "Noncash Charitable Contributions") to the income tax return that you submit for the year in which the easement was donated.
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