estate planning

Even if you don’t anticipate estate taxes, make sure your estate goals and conservation goals are compatible.

Don’t let your conservation actions threaten your financial priorities — such as retirement options, long-term health needs or planned gifts to your heirs. For example, if your land is your main source for paying potential long-term care costs, explore protection options like bequests that give you the flexibility to sell the land if needed.

Don’t let your estate planning actions threaten your conservation priorities.

For example, if protecting your land is your top priority, but you haven’t provided irrevocable protections, you or someone with power of attorney to manage your affairs could be forced to sell the land later to cover your long-term care expenses.

Less dramatically, we’ve been approached by several landowners interested in conservation who have already worked with estate planners to place their land in trusts that guarantee lifetime income, (such as charitable gift annuities, charitable remainder trusts and the like).

As some have learned to late, these trusts are required to return maximum value for the annuity—so it may be impossible to later add conservation protections that reduce value. Even when the annuity is managed by the conservation group that will get the land and other trust assets upon your death, it could be forced to sell your land in order to make payments during your lifetime. If protecting your land’s natural resources is your primary goal, combine this option with a conservation easement or use another option entirely.

Estate planning is a wise move for anyone, but especially for people who own land or other large assets. Just make sure that you know your priorities, options and potential outcomes before locking yourself into a choice that you later regret.

reprinted from Landowner’s Options, © 2007, Iowa Natural Heritage Foundation  

A word about wills

Every adult, of any age, should have a will. It’s one of those jobs that seems to have a distant deadline. In reality, we just don’t know the deadline.

Some people prefer not to reveal to beneficiaries that they are included in the will. While surprise can be a wise strategy in some situations, permanent land protection is not one of them.

Many conservation groups have horror stories about bequests they received with no advance warning or discussion. In some cases, their staff, the deceased’s lawyer and descendents struggled to clarify vague bequest instructions like “use my land for conservation.” In other cases, intended recipients had to reject a surprise bequest because the gift didn’t fit their mission or came with so many restrictions and management costs that they couldn’t afford to accept it.

To avoid such problems, talk with potential recipients before bequeathing land. This way, you’ll have time to clarify goals, revise the will’s language and/or choose another beneficiary.