Donate Your Land
Donating your land for conservation is one of the finest legacies you can leave to future generations of islanders. If you choose to donate your land, the Heritage Trust will work with you to identify the best arrangement for you and your family.
Ways you can donate your land for conservation:
Donate Your Land Outright
You may donate your land outright to Lummi Island Heritage Trust. The Trust might retain ownership of the property as a nature preserve, transfer the property to another conservation organization, or sell the property. In some cases, the land may be sold subject to a conservation easement held by the Heritage Trust. If the Trust decides to sell a donated property, proceeds from the sale will raise much needed funds for the Heritage Trust’s work and help protect even more land on Lummi Island. The full market value of land donated to the Heritage Trust is a tax-deductible charitable gift.
Ways you can donate your land for conservation:
- Donate Outright
- Donate by Bequest in your Will
- Donate a Reserved Life Estate
Donate Your Land Outright
You may donate your land outright to Lummi Island Heritage Trust. The Trust might retain ownership of the property as a nature preserve, transfer the property to another conservation organization, or sell the property. In some cases, the land may be sold subject to a conservation easement held by the Heritage Trust. If the Trust decides to sell a donated property, proceeds from the sale will raise much needed funds for the Heritage Trust’s work and help protect even more land on Lummi Island. The full market value of land donated to the Heritage Trust is a tax-deductible charitable gift.
Donate Your Land through a Bequest in your Will
If you want to give your property to the Heritage Trust, but you want to own and use it during your lifetime, you may want to consider a donation by bequest through your will. A gift of land by bequest is recorded in your will and the donation is made at the time of your death. You retain full use and control of the property during your lifetime, but you have the assurance that it will be protected when you're gone. When making a bequest, it's important to develop a conservation plan with the Heritage Trust to insure that the Heritage Trust will be able to accept your donation when you pass. |
A donation by bequest is an allowable deduction from your estate and reduces potential estate taxes for your heirs. However, you cannot claim a charitable income tax deduction for it and you are still responsible for paying property taxes. A donation by bequest gives you flexibility, because you can revoke the bequest simply by changing your will should your needs or wishes change.
For more information on donating land through your will, we encourage you and your estate planner to contact us.
For more information on donating land through your will, we encourage you and your estate planner to contact us.
Donate a Reserved Life Estate
If you want to give your property to the Heritage Trust, but you want to own and use it during your lifetime, a donation with a reserved life estate may be your best option.
A reserved life estate allows you to turn over your land to the Heritage Trust during your lifetime, while still reserving the right to live on it and use it during your lifetime or the lifetimes of other designated family members through a provision in the deed. In this way, you know the Heritage Trust has accepted your gift, but actual possession doesn't take place until your death.
The income tax benefits of a donation with reserved life estate are greater than for a donation by bequest, but less than for an outright donation. You may have to pay property taxes only on the portion of land that you keep for your personal use, and you may be able to claim an income tax deduction on the remainder interest that you donate. The value of that remainder is what's left after you subtract the value of your lifetime use from the current market value of the property. The value of your use is determined by Internal Revenue Service actuarial tables and is based on the life expectancies of those who hold a reserved interest in the property. The shorter the life expectancy of those who reserve the right to use the land, the higher the value of the gift.
If your heirs use the property before the title is finally transferred on to the Heritage Trust, the estate taxes remain the same. If the land is turned over to the Heritage Trust at your death, then the property is not part of your taxable estate. You cannot revoke a donation with reserved life estate once you've signed the deed.
For more information on donating land through a reserved life estate, we encourage you and your estate planner to contact us.
If you want to give your property to the Heritage Trust, but you want to own and use it during your lifetime, a donation with a reserved life estate may be your best option.
A reserved life estate allows you to turn over your land to the Heritage Trust during your lifetime, while still reserving the right to live on it and use it during your lifetime or the lifetimes of other designated family members through a provision in the deed. In this way, you know the Heritage Trust has accepted your gift, but actual possession doesn't take place until your death.
The income tax benefits of a donation with reserved life estate are greater than for a donation by bequest, but less than for an outright donation. You may have to pay property taxes only on the portion of land that you keep for your personal use, and you may be able to claim an income tax deduction on the remainder interest that you donate. The value of that remainder is what's left after you subtract the value of your lifetime use from the current market value of the property. The value of your use is determined by Internal Revenue Service actuarial tables and is based on the life expectancies of those who hold a reserved interest in the property. The shorter the life expectancy of those who reserve the right to use the land, the higher the value of the gift.
If your heirs use the property before the title is finally transferred on to the Heritage Trust, the estate taxes remain the same. If the land is turned over to the Heritage Trust at your death, then the property is not part of your taxable estate. You cannot revoke a donation with reserved life estate once you've signed the deed.
For more information on donating land through a reserved life estate, we encourage you and your estate planner to contact us.