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Hawaii Island Land Trust |
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What Is a Land Trust?
A land trust is a non-political, non-profit organizationthat works with private landowners, neighborhoods, community groups andgovernment agencies to protect open space by creating preservation opportunitiesusing a wide range of techniques.
Some of the options available for land protection are listed below:
- Direct Purchase of Land - Land may be sold outright by the owner to a land trust. In some circumstances, it maybe more prudent for the land owner to sell the property for a price below fair market value. The income from the sale of the land plus the tax advantages may provide the best financial solution.
- Receiving Gifts of Land - Land is donated by the owner to a land trust for several reasons including the desire to preserve the land, the wish to reduce estate tax burdens, or to reduce the responsibility of managing and caring for the land. Landowners may also donate a remainder interest in the property, which allows them to live on and use the land during their lifetime.
- Developing Conservation Easements - A conservation easement is a voluntary written agreement between a landowner and a land trust that protects certain features of the land, such as wildlife habitats, scenic vistas, cultural or agricultural practices, and important forests.
- Easements are tailored to both satisfy the desires of the landowner and meet the special preservation needs of the land.
- The restrictions set forth in the easement "run with" the title to the property, ensuring protection in perpetuity.
- The property remains in private ownership, and can be otherwise used as before, sold or bequeathed.
- The land trust does not own land under a conservation easement. It does, however, assume responsibility for seeing that the terms of the easement are observed.
- See What is a Conservation Easement for full details.
Economic Benefits of a Land Trust
Travel and tourism are the nation's third largest retail sales industry and tourism is one of Hawai'i's largest employers. Hawai'i's allure to visitors is based on its natural beauty. Tourists seeking locations for outdoor recreation are looking for safe access, abundant natural features, uncrowded beaches, clean water and natural vistas.
Good land stewardship is the key to satisfied visitors and future prosperity. Good stewardship and preservation of naturally fragile area (such as coastlines and watersheds) is sound planning and saves local taxpayers from costly remedial efforts to restore degraded resources. Preserving natural areas for residents and visitors alike is a sound investment in our future, but it should not put a burden on local resources. An active established land trust helps communities benefit from funding available from a wide variety of sources in and out of state because it can offer flexible programs and tax advantages that government agencies cannot.
Tax Benefits
There are potential income, estate, and property tax benefits for donating your land, donating a conservation easement, or selling your property as a "bargain sale" at below market value. The amount and type of tax benefits depend on a variety of factors, including the legal tool used to protect your land, the value of the donation, your income level, and the total amount of your estate. Contact your tax attorney for specific information regarding your situation.
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Call 1-808-324-4458
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