Conservation Easement Costs

There are a number of costs associated with granting a conservation easement.  Palmer Land Trust has attempted to give landowners an accurate breakdown of the costs in the following list of items and services landowners must pay for during the easement granting process:

1. Legal Counsel ($7,500-$20,000): Obtaining experienced legal counsel is highly recommended.  At a minimum, you should hire an attorney to review the actual conservation easement document.  However, some attorneys will be willing to coordinate the entire easement process for you.
2. Financial Advisor (cost varies widely): Many tax incentives may apply to your particular situation.  Therefore, hiring an estate planning and tax accounting specialist can prove to be worth the money spent.
3. Baseline Inventory ($2,000-$4,000): Baseline documentation is required to document the conservation values of the property and to assess its current condition.
4. Title Commitment & Insurance ($1,000-$2,000): Title commitment will verify ownership and identify any exceptions to title.
5. Mineral Report ($0-$1,200): If the mineral estate is severed from the surface estate, then a mineral report will be required (by the IRS) to confirm that the likelihood of mineral development is so remote as to be negligible.
6. Appraisal ($8,000-$10,000): An appraisal by a qualified conservation easement appraiser is required in order to claim federal and state income tax benefits for a gift of conservation easement.  Appraisals are used to determine the value of the conservation easement.
7. Record Conservation Easement ($75-$100): The easement must be recorded in the county where the property is located.
8. Palmer Land Trust Administrative Fee ($5,000): This fee pays for a portion of Palmer Land Trust’s staff and legal review expenses.  In most transactions, Palmer’s costs are actually much greater than $5,000.
9. Contribute to Easement Stewardship Fund ($15,000): According to the Internal Revenue Code, a land trust is required to not only monitor and enforce the terms of its conservation easements in perpetuity, but also to have the resources to do so.  Thus, Palmer Land Trust asks landowners to make a contribution large enough to earn adequate interest each year to support part of its ongoing, legally mandated stewardship obligations.  This donation may be tax deductible.

Total Cost = Approximately $40,000-$60,000

Disclaimer: The examples on this website are merely hypothetical situations.  The values, costs, and tax benefits relating to a particular easement will vary for each landowner and each property.  There is no substitute for obtaining competent legal and accounting advice from consultants experienced with conservation easements, accounting, and tax law.