Land donation can result in a substantial income tax deduction and can be structured in a way that allows you to continue to live on the land or to receive a life income. Some land donation options are:

Outright Donation: Donating land to the Land Trust can relieve you of both the tax burden and the responsibility of managing the land, while also providing the possibility of substantial income tax deductions and estate benefits. And, most importantly, the land will be responsibly managed, and protected in perpetuity for the benefit of present and future generations.

Remainder Interest in Land: You can continue to live on donated land by donating a remainder interest and retaining a reserved life estate. In this arrangement, you donate the property during your lifetime, but reserve the right for yourself or any other named persons to continue to live on and use the property. You have donated to the Land Trust a "remainder interest" in the property. When you or those you've specified die or release their interest, the Land Trust will have full title and control over the property.

Donating Land by Will: If you want to own and control your land during your lifetime, but assure its protection after your death, you can donate it to the Land Trust in your will. Please contact a land trust representative before changing your will to assure that the trust is willing and able to accept the gift.

Land Donations that Establish a Life Income: If you have land you would like to protect by donating it to the Land Trust, but you need to receive income during your lifetime, you might use a charitable gift annuity. In this situation you agree to transfer your property to the Land Trust, and the trust agrees to make regular annuity payments to one or two beneficiaries you specify for life. Another option for receiving regular income is a charitable remainder unitrust. Both of these options are most useful for highly appreciated land, the sale of which would incur high capital gains tax.

Bargain Sale of Land: You sell your land for less than its fair market value. This makes it affordable for the land trust while it provides you with cash, a reduction in capital gains tax, and entitles you to a charitable income tax deduction.


Note: Every landowner's financial situation is different, consult your legal and financial advisors for specific tax benefits.