A conservation easement cuts the value of property by giving away building rights. These rights are given up in a deed to a nonprofit charitable organization, such as a land trust, and their value is then deducted from the market value of the property for estate-tax purposes. This difference can often mean that with an easement in place no estate tax is owed at the owner's death. The gift of a conservation easement is considered a charitable donation, which an owner can deduct from his or her income taxes as well. Even small parcels can reap big tax benefits, says the Journal.
Easements come with restrictions for future development that are binding to heirs and future buyers.
In crafting the terms of the easement, an owner should be careful to consider the needs of future generations. These restrictions do not, however, render the land unmarketable. Quite the contrary, they often enhance property values of adjacent properties, and can even make an entire neighborhood more desirable. But tax benefits don't seem to be the primary motivation for people who put their land into easements. People who have donated easements say it is the ability to leave a lasting mark that is the strongest incentive for them.