The mission of the Muskoka Heritage Trust (MHT) is to protect ecologically sensitive land in Muskoka in perpetuity. One of the ways we do that is to accept donations of conservation easements.

Conservations easements

A conservation easement is a legal agreement between the land owner and MHT that is negotiated and permanently registered on title. A conservation easement significantly limits development of the property, usually requiring that the property will be maintained in its current natural condition forever. The owner retains legal title to the property but, should it be sold, the easement binds subsequent owners.

Assessing Ecological Value

While all natural lands provide habitat for wildlife and benefits such as carbon capture and prevention of erosion, not all are considered equally valuable. Accepting a conservation easement is accepting responsibility for monitoring the property forever, so we don’t take on that responsibility lightly. This means that MHT cannot always accept a conservation easement that may be offered.

A site visit by wildlife and forestry experts on our Technical Advisory Team (TAG ) is the first step in determining whether a conservation easement on a particular property can be accepted. TAG visits must be done in spring or summer, when wildlife is most active and plants are growing and can be identified. The TAG will collect biological information about the property, compile a list of species present and provide MHT with an ecological description of the property.

The information provided by the TAG, as well as other information about the size, location and attributes of the property are compiled in a Project Selection Chart. This compilation of information allows MHT to set priorities, based on ecological value, for acceptance of a conservation easement. In some cases, the ecological value of the property is not high enough to allow MHT to accept the easement. Even if the property is ecologically significant, given financial limitations, a relatively few donations can be processed in any given year.

Procedure for Donation of a Conservation Easement

Many landowners are surprised at how long it takes to complete an easement. This is partly because MHT has only one part time staff person but also because of the need for legal and financial procedures. Both MHT and the landowner must retain the services of a lawyer to complete the conservation easement agreement. There must be discussion about the terms of the easement, including what activities can and cannot take place on the property in future (including changes or additions to buildings).

Almost all conservation easements that are donated to MHT are eligible for a charitable donation tax receipt, based on the appraised reduction in the value of the property. However, easements that are accepted under Canada’s Ecogift program have additional tax benefits, including relief from capital gains taxes. More information about the Ecogift program can be found at http://www.ec.gc.ca/pde-egp/. Because each donor’s situation is different, all donors are advised to seek independent financial and legal advice before proceeding with a donation.

Once a firm decision has been made to donate a conservation easement, MHT will send two forms: Letter of Permission and Interest to Donate (both required by the Ecogift program) for the donor’s signature. Other requirements include a property line survey (if an acceptable one does not already exist), a property appraisal undertaken by a certified appraiser as well as all of the usual legal requirements when a property interest changes ownership. For U.S residents, the need to work through American Friends of Canadian Land Trusts to allow donors to receive tax relief also prolongs the process.

As well as co-ordinating the survey, appraisal and legal requirements, MHT has additional responsibilities. Each property requires a Baseline Documentation Report that documents the condition of the property at the time of acquisition. This is required for conservation easements, to ensure that the MHT will be able to enforce the easement in the future. MHT also prepares the Ecogift application on behalf of the donor.

Costs

The major out-of-pocket costs associated with a donation are for a survey (up to $16,000, if needed), appraisal ($3000-$5000), and legal fees ($2000-$4000). Although minor in comparison with costs associated with donation, MHT also incurs ongoing costs. These include the costs associated with annual monitoring to ensure that there has not been activity incompatible with ecological integrity (e.g. dumping of garbage, unauthorized ATV activity).

Summary

Protecting the land you (and we) love is MHT’s reason for existence. However, the reality is that doing so requires time and costs money, both of which can be in short supply. We hope that this short description of the costs and procedures helps you to understand why MHT cannot always accept an offered donation and why donation may take up to several years to complete.