How can you be sure your historic property's next owners
will preserve it as faithfully as you have? One way is to place a preservation
easement on the property with the Connecticut Trust for Historic Preservation.
What
is a preservation easement?A preservation easement is a legal agreement
that grants a limited right to a qualified nonprofit organization, like the
Connecticut Trust, to protect the property from changes which are not in
keeping with its historic, architectural, or natural character. The agreement
can be very flexible to fit the particular situation. By granting an easement,
the property owner does not give up title, use or control of the property or
the right to sell, donate or will the property. The easement is usually given
in perpetuity, meaning that it also binds future owners.
Why the Connecticut Trust for
Historic Preservation?The Connecticut Trust is a nonprofit,
member-supported organization, one of the foremost statewide preservation
organizations in the country. The Trust has operated a preservation easement
program for more than twenty years and now holds easements on some nineteen
properties, including an office building in New Haven (the former headquarters
of the Southern New England Telephone Company), condominium complexes in Norwich
and New Milford, a number of single-family houses, and open land that provides
historic settings for early farmhouses in Ledyard and Ashford. The Trust also
provides technical assistance, workshops, conferences, publications and
advocacy in preservation matters and issues.
What properties are eligible
for easements Eligibility is determined by the Trust?s staff on a
case-by-case basis, but to be considered the property must be listed or
eligible for listing on the National Register of Historic Places.
What are
the benefits of a preservation easement?The knowledge that your historic
property will be protected for generations to come. AND 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 should 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.
How do I establish an easement?The Connecticut Trust will
provide a draft of an easement agreement for review by your attorney and tax
advisor. The Trust will also supply a written and photographic record of the
property. The donor must retain an appraiser to determine the market value of
the easement. The Trust can help find a qualified appraiser.
What are the
costs of creating an easement? The donor must pay a modest application fee
to the Connecticut Trust as well as the costs of establishing the easement,
including fees for attorneys, tax consultants or appraisers. In addition, the
donor must make an agreed upon donation to the Trusts monitoring fund to cover
the Trusts long-term costs for periodically monitoring the property and for
legal enforcement of the easement, if necessary. All costs are also generally
tax deductible.
For more information on placing a preservation easement on a
property with the Connecticut Trust, please contact us.
