Posts tagged drafting

Drafting Easements to Avoid Disputes

You may have heard that the U.S. Tax Court issued a series of recent opinions that directly address the specific language and necessary elements of a proceeds clause for conservation easements to qualify as charitable contributions. In response, the Land Trust Alliance updated its guidance concerning drafting provisions in conservation easements concerning extinguishment and proceeds -- Pointers for Drafting the Proceeds Clause in Conservation Easements. Your attorney may want to review your template to help avoid additional disputes with landowners. Terrafirma is seeing an uptick in claims where the landowner refuses to comply with the percentage payment in any clause.

The Alliance also has these additional helpful pointers on easement drafting to avoid disputes:

  1. Pointers For Balancing Risk When Permitting Structures On Deductible Conservation Easements
  2. Pointers for Balancing Risk on Conservation Easement Modification Eight Elements to Consider Following the Full Tax Court Decision
  3. What you need to know from tax cases shorn of nuances
  4. Pointers for Balancing IRS Audit Risk When Permitting Commercial Forestry on Tax-Deductible Conservation Easements

Have questions? Please let us know. You can email us directly or call 802-262-6051 for Leslie, or 202-800-2248 for myself.

 
 

Look Again!

When was the last time your organization reviewed your stewardship policy? If it was pre-Terrafirma, it may be time to take another look.

Your policy likely describes how stewardship reserves are set, and it may advise landowners that the funds will be segregated and used only for monitoring and enforcement, not for daily operations of the land trust.

If you have Terrafirma coverage, you might consider adding language that makes it clear if:

  • Reserves may include a contribution of premium for the Terrafirma policy as part of the initial funding
  • Some of the stewardship funds will be used to pay for Terrafirma policies covering not only easements, but the land trust’s own fee properties

 

Have questions about policy drafting or anything else? Please let us know. You can email us directly or call 802-262-6051 for Leslie, or 202-800-2248 for myself.

 

Sign Up for TerraBites

Collectively upholding conservation permanence

Tags

Archives