What is a preservation easement?
Why the Connecticut Trust?
What properties are eligible for easements?
What does a preservation easement do?
- Limits the kinds of alterations and additions that may be made to the property’s historic structures;
- Requires proper maintenance of the structures to preserve their historic character and structural integrity;
- Controls the owner’s right to develop the property by prohibiting subdivision of the land or development of open space.
The restrictions usually apply to the building’s exterior only, but could apply to significant interior features if the donor desires. The protected features of the property are clearly defined in the easement document.
What are the benefits of a preservation easement?
A federal income tax deduction is available to a qualified donor of an easement in an amount equal to the reduction in value of the property resulting from the granting of the easement. In addition, such reduction in market value may reduce estate taxes and local real property taxes. Tax benefits vary according to each donor’s situation and therefore you should consult your attorney, accountant or tax advisor. More about tax benefits.