FAQ's
The following Q&A is intended to give you an overview of the ways in which you can forever preserve your land from development and help Boxford maintain its rural character. Topics covered include Conservation Restrictions, Donations of Land, Bargain Sales and Partial Development/Partial Conservation.
What is a Conservation Restriction?
A Conservation Restriction (or CR) is a legal agreement between a land owner and a land trust or a town, in which the land owner retains ownership of the property but permanently limits future development to protect the land's conservation value.
What rights does a landowner give up and what rights does he/she retain with a CR?
Generally the Conservation Restriction prohibits things such as residential subdivisions and commercial activities. An example would be a restriction that would allow forestry or farming to continue but would prohibit residential subdivisions or clear cutting. Any specific limitations placed on the land by the owner are described in the CR document and must be approved by the Board of Selectmen and the State Secretary of Environmental Affairs.
Who monitors the Conservation Restriction?
The land trust or town holding the CR has the right and obligation to enforce the terms of the document.
Are there any tax benefits to a CR?
Yes. When you donate a CR to Boxford or BTA/BOLT, it is a charitable gift which may be deductible for federal income tax purposes. Also, a conservation restriction will reduce the market value of the property and therefore reduce the amount of inheritance tax if the land is part of an estate. A CR may alleviate the need for the family to sell the land to pay estate taxes. When a landowner gives land to a family member, gifts over $10,000 are subject to federal gift tax. Lowering the value of land through a conservation restriction may help lower the gifts tax. Finally, where a CR reduces the value of the property, real estate taxes may be reduced.
What about public access?
CRs require that you give access to BTA/BOLT volunteers or to the town for monitoring visits, but they do not give the general public the right to use the property. However, you may wish to include a specific public access provision in the easement. Examples might include a trail easement for hikers and cross country skiers.
How are easements monitored and enforced?
For every easement a baseline documentation report is created at the time of closing describing the lands physical and resource attributes. Once the CR is complete, your property will be monitored annually to ensure there are no violations.
Is a CR permanent?
Yes, it is. The CR is permanent and is recorded with the property deed. The property remains private and can be sold or passed on to heirs as before, but the restrictions on certain uses remain in perpetuity.
What is my next step?
Contact BTA/BOLT >
What happens if I chose to donate my land?
The value of the land that you donate to a qualified land trust (BTA/BOLT) or to a town (Boxford) is considered a charitable tax deduction for income tax purposes. If you prefer to maintain ownership during your lifetime, you can bequeath the property in your will. Alternatively, you can reserve a life estate in the land trust and transfer the remainder interest to the land trust or the town.
What is a bargain sale?
A bargain sale occurs when land is sold to Boxford or BTA/BOLT at less than fair market value. A charitable deduction (the difference between the fair market value and the sale price of the land) may help to offset income generated from the sale.
Do I have to conserve my entire parcel of land?
No. A landowner may choose to develop part of his land and donate or restrict another part. In this scenario, he may generate income as well as a charitable contribution.