Is Land Donation Is Right For You? Five Scenarios to Consider
Are you considering donating your land to the Rehoboth Land Trust? Whether you have a large parcel of land with conservation value or a small vacation retreat, you can donate your land outright to the Rehoboth Land Trust. By doing so, you are contributing to one of the greatest legacies you can leave for future generations. Land donation is a relatively simple transaction and is appealing to many for a number of reasons.
Here are five scenarios to consider if you’re thinking of making a land donation.
1. Your land has significant conservation value but doesn’t have a responsible steward to inherit it.
If you don’t have an heir (or heirs) who can or will protect your land from future development, land donation is a great way to ensure its future protection. In an era where wooded areas like those found in southeastern Massachusetts are under threat of urbanization and development, donating land to an organization such as the Rehoboth Land Trust provides a first-line defense in preservation.
2. You own property (such as a vacation retreat) that you no longer use.
If you have a property that has fallen by the wayside, consider whether conserving the land would be a better use. In Rehoboth, there are many species of turtle including the box turtle that are rapidly losing their habitat. Properties like our Reynolds Avenue Conservation Area, donated by Raymond Shaw, have proven to be a much needed sanctuary for species like the box turtle. Your donation will help to ensure that they have a home.
While this shy guy isn’t a box turtle, he belongs to one of the species (a snapping turtle) in Rehoboth that could benefit from your land donation.
3. Your property has highly appreciated—the sale of which would result in a large capital gains tax.
No one likes getting a surprise (especially a hefty) tax bill. With the cost of land in Massachusetts ever-increasing, you might be surprised what your land is worth. Donating land to a qualifying nonprofit conservation organization like the Rehoboth Land Trust is one tool at your disposal to mitigate a capital gains tax from a property whose value has increased. What’s more, you can feel good that the property you donate will be protected and preserved for the common good and for your fellow neighbors.
4. You already have substantial real estate holdings and wish to reduce the estate tax burdens.
Did you know? In Massachusetts, estates valued at more than $1 million are subject to the state’s estate tax. If your estate contains land of sizable value, it could become necessary to sell the land or part of it to pay the estate tax bill. Donating land allows it to change ownership and therefore reduces your tax obligation—and protects it as the valuable natural resource that it is!
5. You love your land but want to be relieved of the responsibility of caring for and managing it.
Caring for a property, large or small, poses its own unique challenges and responsibilities. In some cases, those responsibilities can add up to the equivalent of a full time job! Whether you are seeking a different lifestyle or find yourself no longer able to carry out the work necessary to properly care for your property, land donation can provide the relief you’re seeking.
Interested in making a donation?