[Hvcatskillcewg] Merger of Title

[Lucy Hayden]

I would think that the land trust must transfer the conservation easement to
another land trust when it accepts ownership of a parcel it has under
easement. When Winnakee was given Burger Hill Park on which we held an
easement, we swapped ownership of the park for the conservation easement
with Scenic Hudson. 
 
Perhaps this possbility should be covered under as standard wording in the
easement, under Assignment by Land Trust to Other Organizations and in
Easement Binding on Future Owners, or whatever similar clauses you use?
 
Interested to know the answer . . . 
 
Lucy Hayden 
Winnakee
 
 
 
 
  _____  

From: hvcatskillcewg-bounces at lists.ltanet.org
[mailto:hvcatskillcewg-bounces at lists.ltanet.org] On Behalf Of Heidi Bock
Sent: Thursday, August 02, 2007 11:15 AM
To: hvcatskillcewg at lists.ltanet.org
Subject: [Hvcatskillcewg] Merger of Title
 
Hello All,
 
A question of interest has come up here at CLC and I was wondering if there
is any insight out there about it
 
Here's the scenario put forth by our land protection folks: 
 
"Some nice wealthy landowner donates a conservation easement to a Land Trust
in New York State and thus benefits from a substantial charitable deduction.
Land Trust records said easement and goes about its business.
Nice landowner kicks the bucket and bequeaths the property subject to the
easement to the same Land Trust.
Presto!  Merger of Title - the same entity cannot hold both the fee
ownership and conservation easement on the same property so the easement
miraculously disappears.
The Land Trust could now sell the property for its full fair market value,
unencumbered by a conservation easement?
 
But how can this be? Conservation Easements are granted in perpetuity.
 
The original deed of conservation easement is still gumming up the land
records (no release or cancellation is filed).
Donating a conservation easement does not bank development rights with the
land trust - those development rights are extinguished.
I don't think the IRS would be very happy to grant a substantial charitable
deduction on a gift of real estate, just to have that valuable real estate
reconstitute itself in a few years time and start all over again.
 
It seems to me that Merger of Title is really an issue of how to deal with
the legal complexities during a presumably temporary period of fee and
easement ownership under a single entity.  To consider Merger of Title as an
automatic cancellation of a conservation easement threatens the very
principles of perpetuity and the extinguishment of development rights that
are the bases of a land trust's land conservation program."
 
Any thoughts, suggestions, comments.
 
 
 
Thanks,
 
~heidi 
 
 
 
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