Logging trucks regularly pass Betty Davies’ property near the upper Susquehana River in rural Mehoopany, PA. And over the years, she has turned down offers to harvest her 40 acres of timber. But Davies, who celebrated her 80th birthday in January, wanted some assurance that the "special place" she and her late husband bought in 1959 would remain unspoiled even after she was no longer able to watch over it.

And so Davies gave away most of her development rights to the land, ensuring that the woods would be preserved — and minimizing any inheritance tax that could burden her heirs.

In December 1997 she donated a conservation easement to the Back Mountain Regional Land Trust, which will supervise the property indefinitely. The easement is a permanent part of the property record, and Davies and any subsequent owners will be bound by its restrictions.

Who Can Donate

The 1,100 nonprofit land trusts, like NCLT, across the country typically accept easements on land that suits their public policy goals. Trusts usually also require a cash endowment, or stewardship fund, to cover the cost of monitoring the easement into the future.

Tax Breaks

In return, though, donors qualify for substantial tax breaks. The value of the easement itself (that is, the difference between the land’s appraised value with the restrictions in place and its value if it could be developed) is deductible on your federal income-tax return.

There are federal estate-tax breaks, too. Not only is an estate allowed a lower tax valuation on its land because the development rights are tied up, but the estate is entitled to additional tax deductions — based on as much as 40% of the post-easement land value.