The land trusts will need to physically inspect your property. Some people don’t like having people on their land constantly. The bad news is that your land trust will need to physically inspect your land at least once a year. 
There will be a few inconveniences with a conservation easement. Furthermore, most non-profits don’t have the resources to visit multiple times. They’re unlikely to push this issue because they simply can’t dedicate the personnel.
If you’re sincerely worried about this, then be sure to negotiate your expectations upfront. Otherwise, you’ll likely find that the once a year inspection is more than enough for the land trust and not all that inconvenient for you!
- You can overstate the value of the conservation easement. To claim the tax benefits for a conservation easement (on both the state and federal level), you must file forms to document the transaction.
If the deduction is larger than $500,000, you must provide an appraisal along with IRS Form 8283. Currently, agencies are paying closer attention than ever before to ensure that values are not intentionally or accidentally overstated.
When going through the conservation easement process, you must have a defensible appraisal of the land in question. So, not only will you have to pay for an appraisal of the property, but you’ll still have to actively avoid overstating the value of your conservation easement.
B o t h C a n C o s t Y o u !
- You can only take advantage of this easement if you meet one of these four categories from a financial standpoint. The following is found in the IRS Code, Section 1.170A-14(d).
- You are preserving a relatively natural habitat of wildlife, fish, or plants,
- You wish to preserve forests or agricultural lands that have open spaces,
- You want to allow public access to a portion of your land,
- You are protecting the property in response to a clearly delineated government policy that is identified in local open-space plans
In general, conservation easements must provide public benefits. “Public benefits” include water quality, farm and ranchland preservation, scenic views, wildlife habitat, protecting endangered species, outdoor recreation, education, and historic preservation.
- You can accidentaly choose incorrect land trusts. Not all land trusts are created equal! For every awesome land trust out there that will work with you every step of the way, there are equally awful land trusts.
Some land trusts want to create benefits that are mutually advantageous. Others are inflexible and confrontational about your property. This can put property owners in a tough situation, especially when you’re not familiar with the process.
Of all the conservation easements cons on this list, this is one you can hopefully avoid based purely on research.
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Land trusts are non-profit organizations that actively work to conserve land.
It is their job to ensure that all the restrictions described in a conservation easement are actually carried out.The land trust will take legal action if necessary to enforce the easement.
It’s important to select the right land trust as you’ll work closely with them to ensure you’ve come to the right agreement and can move forward comfortably.
This is a big decision – don’t take it lightly!