2009 landowner special edition
TRANSCRIPT
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In Western VIrgInIa pi 2009
westernvirginialandtrust.org
Saving Land
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Conservation along Craigs Creeky George Kegley
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Arrowhead Hunt Club LLC signed a conservationeasement in January on a mile and a hal oCraigs Creek, about ve miles east o NewCastle, on land owned by the Eakin amily oralmost 230 years. The Western Virginia Land
Trust and the Mountain Castles Soil and WaterConservation District co-hold the easement.
The 13-member hunt club obtained theeasement to preserve the stream, said LendenEakin, club secretary and a Roanoke attorney.The club owns 344 acres o Craig County landpurchased by Nathan Eakin, an ancestor, in1780. The easement will make certain that thebottomland along the creek is kept in trees and
cant be timbered or built in, but the club canstill hunt it, maintain trails, and possibly replacethe stream ord with a bridge one day.
s a club member and their young childrenaria and Nathan, enjoy the recreation.
The beautiul property has just one problemmembers must ord the creek to reach the
property and high water prevents access or 10to 15 days a year, Eakin said.
his project received funds from the Water QualityImprovement Act through the Department ofConservation and Recreation.
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by Roger Holnback
From the DirectorWhats this Magazine all about, and Why Should You Care?
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I youve received this copy o Saving Land, youare probably either:
a member of the Western Virginia Land Trust
or one of 5,000 private landowners in westernVirginia who own 100 acres o land or more.
Believe it or not, there are only a ew thousandamilies that own most o the larger tracts oland in our part o the state. These numberstell me that as a landowner, your decisions willhave a great eect on all o us as the years go byand you make hard decisions about your land.
I you want to pass on your land to your children
and grandchildren, then there are ways to do itdescribed in this magazine. These tools will putreal money in your pocket now, while at thesame time helping you pass on the legacy oyour land, all while avoiding or reducing estatetaxes.
The Western Virginia Land Trust helpslandowner conserve and pass on their landwith conservation easementslegal agreementsthat protect and preserve what you think
is special about your land. In our 13 years at
the Land Trust, we have helped hundreds oamilies learn about conservation options andconservation easements that have protectedtens o thousands o acres o our regions arms,
orests, waterways and landmarks.
All o our programs and eorts involve voluntaryparticipationwe provide no-cost educationabout ederal and state programs that can bringyou real nancial gain through tax incentives.We make nothing rom our work consulting withour areas landowners, except the gratitude othe amilies we have helped. Our 700 individual,amily, and business members, as well as a ewprivate oundation grants, provide us with the
nancial resources to carry out this task.
Please take the time to read this special issueo Saving Land that weve mailed to you, andlearn more about your options or your land. Aconservation easement isnt or everyone, but itmay be just the thing or you and your amily.And i you have any questions or want to learnmore, please call the Western Virginia LandTrust at (540) 985-0000 or attend one o ourMarch landowner workshops that are described
on page 6.
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Ofcers
Janet Scheid
President
James M. Turner, Jr.
Vice President
Gary R. Duerk
Treasurer
Lucy R. Ellett
Secretary
TrusteesElizabeth H. Belcher
Stanley G. Breakell
Richard P. Chafn
Stephen M. Claytor
Lynn M. Davis
Whitney H. Feldmann
Janet D. Frantz
William M. Hackworth
Robert H. Hunt
Anne M. Jennings
George A. Kegley
John W. Rader, Sr.
J. Richard Wells
Advisory CouncilLiza T. Field
Talfourd H. Kemper
Robert B. Lambeth, Jr.
Barbara B. Lemon
Stephen W. Lemon
Jeanne M. Martin
Howard C. PackettJohn B. Williamson, III
Clifton A. Woodrum, III
Staff
Roger B. Holnback
Executive Director
David C. PerryProject Manager
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Western Virginia Land TrustPromoting the conservation of western
Virginias natural resources farms, forests,waterways, and rural landscapes.
722 First St., SW, Suite LRoanoke, VA 24016-4120Phone/fax (540) 985-0000
www.westernvirginialandtrust.org
Cover Photo: WVLT staff pose on RoaringRun in Franklin County. Credit: David Perry
Your Land, Your ChoicesVirginia Landowners Benet from Conservation Easements
Decisions you make about your land will shape our landscapor generations to come. The Western Virginia Land Truhopes that you will be interested in options to conservour scenic and rural places while meeting your person
goals and potentially enhancing your nancial security. Thinormation in this magazine is o critical importance i ano the ollowing apply to you:
You want to preserve something special about your land You want to keep your land in the family You can use additional income from your land witho
selling it You can use a substantial income tax deduction You are concerned about estate taxes
The Western Virginia Land Trust (WVLT) is a private, nonproorganization ormed to promote the conservation o westeVirginias natural resourcesarms, orests, waterways and rurlandscapes. We work with property owners to help them nvoluntary ways o preserving their land so that all o our descendanwill have places available to arm, cut timber, hunt, sh, hike anenjoy the beauty o our special part o Virginia.
Conservation easements can be used to accomplish these goaby limiting intensive development while keeping land in privahands and providing landowners with substantial tax benets an
even cash compensation. A conservation easement is a fexible anvoluntary tool that lets you determine the legacy o your lanAter reading this magazine, i a conservation easement seems lia natural t or you, or i you just need more inormation to seeone might work or you, please call us at (540) 985-0000 or checout our website at westernvirginialandtrust.org. You can also attenone o the ree evening landowner workshops in your areasee thschedule o events on page 6.
Landowners featurein this issu
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A conservation easement is a voluntary, deededagreement that permanently protects land romsubdivision and commercial development. Iyouve ever heard a riend, neighbor, or amilymember say theyve put their land into the
land trust, they mean theyve donated aconservation easement to an organization likethe Western Virginia Land Trust. Why is it calleda donation? Its because the IRS considers aconservation easement to be a charitable gitthat you give to a land trust, just like a checkyoud write or a childs FFA undraiser or thevolunteer re department. The land trust thataccepts the easement agrees to enorce theterms o the easement so that your wishes oryour land are carried outorever!
An easement protects your peace o mind bypreserving the scenic, agricultural, natural orhistoric qualities o your land while improvingyour nancial security through tax benets and
completely voluntary and initiated bylandowners who wish to orever protect andpreserve the land they love.
Private: Conservation easements do notrequire public access, and landowners retain
total control of who visits their property. Youstill own your land and can sell it, leave it toyour heirs, or give it to someone else.
Permanent: Conservation easementspermanently protect land. You decide whatspecial elements o your land get preservedorever.
Flexible Traditional rural land uses such ashunting, shing, arming and orestry are verycompatible with conservation easements. The
agreements are as individual as the lands theyprotect and the people who own them.
Financially Benefcial Donating aconservation easement can provide signicantnancial benet to landowners and their heirs:
Virginia state income tax credits, which can
Conservation Easements
I ho e m exam le will encoura eot ers to ta e simi ar action toadd their su ort to reservet e eaut o t e va ey w icsurroun s us.
-Ned Yost
Ned donated a conservationasement to WVLT and the Virginia
Outdoors Foundation to protect hishistoric McDonalds Mill propertyin Montgomery County.
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The Western Virginia Land Trust will hold a numbero landowner workshops all across the WVLTservice area this spring to help educate landownerson conversation easements. Each will be aboutan hour and a hal in length and will be held at
public meeting spaces such as schools or libraries.Interested landowners are encouraged to come out
and learn more about the latest news on conservationeasements. There is no cost or obligation to attendEach participant will receive a special landowneredition oSaving Land in Western Virginia, as well asthe Land Trusts new DVD on conservation easements
Your Land, Your Choices.
Spring Landowner Workshops
MARCH 20091
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Buc ananB ue Ri ge FarmCenter (John DeereDay)Saturday, March 71 pm
Martinsvi ePatric HenryCommunity Co egeWednesday, March11 7 pm
Day ig t SavingsTime egins
Roc y MountGereau CenterThursday, March2 7 pm
Be orBe or CentraLi rary Mon ay,March 16 7 pm
St. Patricks Day First Day o Spring
StuartPatric CountyLi raryT urs ay, Marc9 6:30 pm
HillsvilleCarroll CountyLi rary Tues ay,Marc 24 7 pm
FloydFloyd Co. StoreT urs ay, Marc6 7 pm
S awsvi e
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T ese are t e typica steps invo ved in donating aconservation easement. The landowner can changehis or her mind about the easement at any timeuntil the easement deed is signed and recordedat the courthouse. While these steps show thetypical procedure, there are some situations wherethe order o these steps varies. The process maytake anywhere rom a ew months to more than ayear to complete.
Step 1: Consideration of Easement
Oten the rst step in completing an easement isa phone call to the Western Virginia Land Trust.The landowner and land trust sta discuss the
landowners goals, their wishes or their land,and potential easement holders. Aterwards, thelandowner may consult with amily and possiblyan attorney or nancial advisor.
Step 2: Site Visit
Sta rom the potential easement holder and thelandowner meet and view the property. Duringthis visit, sta analyzes the lands eatures andresources and works with the landowner and theirattorney on easement terms that will meet the
landowners goals, protect the resources, and meetthe standards o the easement holder.
Step 3: Preliminary Agreement
At this point, the landowner and their attorneyreach a preliminary agreement with the easementholder on the proposed terms o the easement,called a drat easement. I there is a mortgage, thelandowner or their attorney contacts the lenderto arrange or their agreement. The landowner
can now contact an appraiser to schedule a timelyappraisal o the property at a later date.
Step 4: Requirement for Title Opinion and Letter of Intent
The landowners attorney provides a preliminary60-year title opinion (certication o title ortitle report) to the easement holder. This is asearch done at the courthouse to show that thelandowner has clear title to the land. In addition,the landowner submits a letter to the easementholder stating a desire to donate the easement.
Step 5: Staff Research
Sta completes research on the property,ncluding obtaining inormation on zoning
potential inclusion o the property in variousstate plans, presence o endangered species, andother inormation. Sta also creates a variety omaps and obtains deeds and recorded plats o theproperty.
Step 6: Board Approval
Each drat easement proposal must be approvedby the easement holders board o directors. Theboard may accept the drat easement, acceptt subject to changes, or reject it. Following the
meeting, sta will inorm the landowner o theboards action. I the board conditions approvalon modications to the proposed terms o theeasement, the landowner must consider and agreeto the changes in order to proceed. Board approvadoes not obligate the landowner to complete theeasement. The landowner may have a limitedamount o time rom the date o approval, suchas two years or a Virginia Outdoors Foundationeasement. However, i the landowner proposes achange in any terms o the easement that would
TesTimonial
continued on page 8
Ten Steps to Completing a
Conservation Easement
I did a conservation easement becauseits the ri ht thing to do.- Tom Kir in
Tom signed a conservation easement with the
Western Virginia Land Trust and the Mountain
Castles Soil and Water Conservation District on
his property along Sinking Creek in Botetourt
County.
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result in a less restrictive easement than that approved previously,the easement will need to be reapproved by the board.
Step 7: Follow-up site visit
Sta makes a return visit or documentation o the property,
photographing key eatures and natural and open-space resources,as well as all structures and any areas o particular mention in thedrat easement. Sta labels all photos and completes a photo pointmap showing all key property eatures, roads and structures.
Step 8: Baseline Documentation Report
Sta details the eatures o the property at the time o the easementn a document called a Baseline Documentation Report (BDR). The
BDR may include: a summary sheet, topographic map showing theboundary o the property, aerial map, county tax maps, availablesurvey plats and photographs keyed to a map. The landowner
reviews the inormation, then signs and returns an acknowledgmentattesting to its accuracy.
Step 9: Finalizing Easement Draft
The attorney or the landowner produces the nal signature-readyeasement and sends the nal 60-year title opinion to the easementholder. The landowner then signs the easement. I there is a mortgageon the property, the lender will sign the easement as well. Then it issent to the easement holder or recordation at the courthouse.
Step: 10 Recordation
The easement holder signs the easement and records it in the ClerksOce o the County Circuit Court. A copy o the recorded easements sent to the landowner and/or their attorney.
TesTimonial
Ten Steps continued
When were one, wewant our an to e usein a similar fashion. We
hate to see land cut u ,wit ouses a over in anice rural community.- De ie Brig t
Debbie and husband Larrydonated a conservationeasement on their Floyd Countyfarm.
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Will I still own my land ater Ido a conservation easement?Yes! The land is still yours, and youare ree to sell it, give it away, or domost anything you want with it.What youve given up is the right to
agencies may also hold easements,ncluding:
Any city or county governmentVA Dept of ForestryVA Dept of Conservation &Recreation
Frequently Asked Questionsnvolved and the complexity o your
easement. Generally, you can expecto pay or a special appraisal o your
property, as well as your attorneys andnancial advisors ees or reviewingyour easement. For most peop e
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Each agreement is unique, but all share somegeneral starting points. Following is a summary owhats included in a sample easement. Remember,some points are negotiable as long as they servea worthwhile conservation goal, and manylandowners request more specic terms to crat adocument that will meet their needs and protectsome unique resource on their land. Keep in mindthat conservation easements only restrict thespecic activities mentioned in the document.I you dont see a right or an activity specicallyrestricted in the easement, you arent giving itup.
1. Division - Usually, properties up to 100 acreswill be preserved as undivided tracts, those between100 and 200 may be divided once, and then onedivision is permitted or every additional hundredacres. Large tracts may also be preserved with nodivisions, or ewer than the maximum allowed.
2. Buildings and Structures Typically amaximum o one single-amily home is permittedon each parcel, along with associated outbuildingssuch as garages, sheds, barns and other armstructures. Provisions or secondary dwellingssuch as cabins or guest cottages are requentlyallowed, oten with a limitation in size to 2000sq. t. I your easement allows you to divideyour land, each parcel can contain a home andassociated structures. Easements may also bedrated to preserve land with ewer or no buildings.And i your easement protects important views,such as Blue Ridge Parkway or Appalachian Trailoverlooks, there may be urther restrictions onwhere building can take place.
3. Industrial or Commercial Activities -Agriculture, orestry and equine activities arepermitted, along with temporary outdoor activitiesthat do not permanently change the appearanceo your land, as well as indoor businesses withinpermitted buildings (house, barn, etc.). A widerange o agribusiness options are available,such as a winery that uses grapes grown on theproperty or a produce stand to sell whats grown
on the arm. Depending on the terms o youreasement and your goals, certain commercial orindustrial activities may be prohibited to protectthe character o the land.
4. Forest Management - Timber harvests mustinclude best management practices (BMPs) tocontrol erosion and protect water quality, anda orest management plan is required beorecommercial timbering begins. Logging provisionscan speciy management plans to protect scenicorests, animal habitat, or other specic resourcesand personal uses such as rewood cutting are notrestricted.
5. Trash - There are no restrictions against brushpiles, composting, arm machinery storage or otheragriculture or wildlie management practices, butlarge amounts trash, reuse or junk will not bepermitted on your land. You will not be responsibleor cleaning trash brought in by foodwaters orother situations beyond your control.
6. Signs - You can still post your land and havesigns to show your address, advertise the sale orlease o your land or goods or services producedthere or direct visitors, but billboards and otherlarge signs are not permitted. No sign can be largerthan nine square eet.
7. Grading, Blasting, Mining - You can stillconstruct private roads and utilities to servepermitted structures. Farm roads and ponds arealso allowed, but mining and other earth removalis prohibited. This does not in any way restrictcultivation.
8. Inspection - The easement holder may visityour property annually ater giving reasonablenotice. Inspections only deal with the termsspecied in the easement things that are simpleand obvious to monitor.
9. Notifcation - You or your estate wilneed to notiy the easement holder within60 days o any transer or sale o the land,
Whats the Fine Print in a Conservation Easement?
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11so the easement holder can contact the newowners.
10. Enorcement - When you sign a conservationeasement, the easement holder has the obligationto enorce its terms to protect your property. Ithere are violations o the easement at any time
in the uture, they must be stopped and correctedand, i need be, enorced in a court o law.
Essentially, easement terms assure that your landwill always stay pretty much the way it is now.The only rights you give up are those specicallylisted in your easement. I your general goal is topreserve your land but you dont like a specicprovision listed above, dont assume that aneasement cant work. When a landowner and a
land trust have mutual goals to protect the land,easement terms can oten be arranged to preservewhat is special about the property as well as meetthe owners unique needs and circumstances.
TesTimonial
We are honored to work with the Land Trustto reserve the environment for the futurean or t ose citizens ownstream. W at a neorganization. The dont ust talk about theenv ronmen . ey o some ng a ou .
- S y Preece
Sky signed a conservation easement with WVLT andthe Mountain Castles Soil and Water ConservationDistrict to protect creek frontage and wetlands on hisBotetourt County land.
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12 Cash forConservationVirginia tax credit sales offerlandowners new options
The primary reason landownersdonate conservation easementsis to preserve some natural,scenic, agricultural or historicresource o their land orever.Many want to establish alegacy or their children andgrandchildren. Most value thepeace o mind rom knowingthat their land will always beprotected rom development.However, landowners cantignore the value o their property.For many rural landowners,
real estate is their primary assetand permanent reduction inits value cant be taken lightly.Fortunately, there are manynancial benets to donatingconservation easements.Remember, the IRS considers aconservation easement to be acharitable git because youregiving the ability to do certainthings with your landandthat has a value! A certiedappraiser must determine an
easements value (the basis o alltax advantages) by showing thedierence between what land isworth beore being conservedand what its worth ater beingplaced under easement. Forexample, i a $500,000 arm wereworth $300,000 i the ownergives up the right to turn it intoa subdivision, the easementvalue would be $200,000.
1. State Tax Credit
Virginia oers easement donorsa tax credit worth 40% o theireasement value. This credit canbe applied against state incometax for up to ten years. (Usingour example above, 40% o$200,000 equals $80,000 intax credits.) As a result, manyeasement donors wont have topay state income tax or ten years.However, even ater eliminatingstate taxes or ten years, manyeasement donors would have
to leave signicant tax creditvalue unused. Since 2003, theunused tax credit can be sold.Any owner o Virginia land whodonates land or an easement orconservation purposes is entitledto a tax credit worth 40% otheir git. Any portion o thetax credit may be sold or given
to other Virginia taxpayers. Thiscredit may even be sold by out-o-state residents who donateconservation easements onVirginia property. WVLT is notdirectly involved in the sale oconservation tax credits, but canprovide a list o brokers uponrequest. Prospective easementdonors should also consulttheir own nancial and legaladvisors.
2. Federal Income Tax
Deduction
The donation o an easementis treated as a special charitablegit and the value o theeasement may be deductedrom the donors income orpurposes o calculating incometaxes. Landowners may claima deduction o 50% o theiradjusted gross income (AGI) inthe year the donation is given,and the unused portion o the
git may be carried orward tobe used as a deduction or upto an additional teen years,subject to the 50% limit eachyear. The deduction may not betranserred. In addition to the50% deductibility, all easementdonors who make over 50% otheir income rom agriculturalproduction in the year o thegit may be able to deduct 100%o their income rom incometaxes. Congress has extended
this deduction through Dec. 31,2009.
3. Estate Tax Reduction
Estate taxes oten surprise heirsas land values increase. Insome cases, a landowners heirsmust sell the property just topay estate taxes. By donatingan easement, landowners canreduce these taxes in two ways:First, the estate will have beenreduced by the value o the
easement (smaller estate valuemeans less or perhaps no estate tax due). Second, heirsmay exclude up to an additiona0% o the remaining value o
their land rom estate taxes upto $500,000.
4. Reduced Real Estate
Taxes
The Code o Virginia requireslocal jurisdictions to assess landprotected by a conservationeasement only or the value o itspermitted uses. In other wordsi your land values are going updue to residential subdivisionsyour land assessments shouldnot go up i an easementprevents such use. In additioni your county oers land-use taxation, a conservation
easement guarantees that yourproperty qualies. I you nowqualiy or land-use taxation, aconservation easement probablywont make any more dierencein your real estate tax bill todayBut as times and land valueschange, it could mean bigsavings in the uture.
TesTimonial
M husband and I counturse ves as ortunate to ave
made a small contribution to theuture and to have maintainedne more ermanent view from
t e B ue Ri ge Par way.
- Jeanne Martin
eanne and husband Robert signedconservation easements with theWestern Virginia Land Trust, theVirginia Outdoors Foundation,and the Blue Ridge Soil and WaterConservation District to protecttheir property along the Parkwayn Frank n County.
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Scenic Virginia Honors WVLT, OutdoorsFoundation, City of RoanokeScenic Virginia gave its annual watershed protection award tothe City o Roanoke, the Western Virginia Land Trust, and the
NEWSAttorney and CPA WorkshopsThe Western Virginia Land Trust will hold three continuing education workshops or area attorneys, CPAs, andother interested professionals in May of 2009. The workshops, entitled Conservation Easements: What Youand Your Clients Need to Know, will cover the basics of conservation easements including legal and nancialaspects and the appraisal process. CLE credit will be awarded and each participant will receive a course notebook
and certicate o completion. The cost is $79 per person, and everyone must preregister by May 15. Presentersinc u e attorneys Ro ert Lam et an Step en Lemon, CPA Fu ton Ga er, an appraiser Sam Long. Course ateand times are as ollows:
Date Location TimeTuesday, May 19 Forest Library, Forest 9 am 12 pmWednesday, May 20 Roanoke Higher Ed Center, Rm 408 9 am 12 pmThursday, May 21 Patrick Henry Com College 1-4 pm
West Hall 127, Martinsville, VA
You can register online at www.westernvirginialandtrust.org. To request a mail-in registration brochure, call the Land Trust at (540)985-0000 or e-mail [email protected].
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In January, Jack Norton and his amily placed ariparian conservation easement on a mile and ahal o Roaring Run, a good trout stream belowSmart View on the Blue Ridge Parkway in Franklin
County. The easement protects the stream, runningthrough property the Norton amily has owned ormore than 30 years.
The Nortons easementis the culmination omore than six years oconservation eorts by theWestern Virginia Land Truston Roaring Run. WVLTworked with upstream
landowners Tom Keller andRobert and Jeanne Martinto protect the headwaterso the stream rom 2003to 2006. The Nortonseasement now protects theremaining length o RoaringRun rom its headwaters toits confuence with RennetBag Creek.
Hank Norton, Jacks ather,bought the wooded hillsidetract o 212 acres while hewas ootball coach andathletic director at FerrumCollege or 34 years. Theolder Norton retired toDeltaville in eastern Virginiaand the property is nowowned by Jack, his brother
Will and two cousins, Frankand Carter.
The easement on 19.5 acres o stream rontage isco-held by the Western Virginia Land Trust and theBlue Ridge Soil and Water Conservation District. Aswith all conservation easements, the Nortons stillown the land and control access to it. The easementprevents timbering along the creek bottom, butallows the Nortons to sh, hunt, maintain existingtrails and do all the things they love.
Roaring Run fows down rom Walnut Knob andBrushy Knob into Rennet Bag Creek and on intoPhilpott Lake. Jack, who works with auto dealers toplace their car inventories online or prospective
buyers, loves to throw in a line or native trout, buthe always puts them back.
Jack, his wie, Kristi, son Jackson and daughteSummer, enjoy shing and camping on the amilywoodland. Jackson loves the outdoors and heslearning to catch trout. Summer is a camperHopeully, the children will enjoy the protectedstream on into the uture, Jack said.
his project received funds from the Water Quality Improvement Act through the Department Conservation and Recreation.
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WVLTs Roaring Run project area
Norton Easement Completes 6-year Conservation EffortFamily easement expands protected area along Blue Ridge Parkway y George Kegley
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nonprofi rg.
U.s. p s age paid
oanoke, V
permiT n . 172
722 First Street, SW, Suite L
Roanoke, Virginia 24016-4120
Phone/Fax 540/985-0000
Town Location Date Time
Buchanan Blue Ridge Farm Center (John Deere Day) Saturday, March 7 1 pm
Martinsville Patrick Henry Community College Wednesday, March 11 7 pm
Roc y Mount Gereau Center T urs ay, Marc 12 7 pm
Bedord Bedord Central Library Monday, March 16 7 pm
Stuart Patrick County Library Thursday, March 19 6:30 pm
Hillsville Carroll County Library Tuesday, March 24 7 pm
Floyd Floyd Country Store Thursday, March 26 7 pm
S awsvi e Mea ow roo Pu ic Li rary Tues ay, Marc 31 6:30 pm
WVLT Project Manager, David Perry, talkswith landowners in Carroll County