Do Nothing: Experience has shown that the number one obstacle to the protection of family land is pure and simple procrastination. Few advisors support the do nothing option when it comes to estate planning. While doing nothing spares one time, expense and worry in the short term, the long term implications can be complex for a surviving spouse, or divisive among heirs. The “do nothing” option is the choice that leaves the estate and the forest most at risk. (READ MORE)
Family Partnerships: Some families choose to put their forests in family partnerships or qualifying conservation trusts. This helps keep the forest together as a functioning ecosystem. How the family land and the partnership are managed can be set by the owner when establishing the partnership, or the decisions can be shared among the owner and heirs. (READ MORE)
Sell or Give the Forest to Heirs before Death: Some family forest landowners prefer to sell or give portions of their estate to their heirs before death to mitigate estate taxes. A basic principle here is to first develop a shared understanding of how the land will be used. (READ MORE)
Land Trust: Land trust organizations exist across the country. They can be found at a national level, state level, and being run by friends and neighbors in small communities as well. Land trusts often purchase conservation easements on family forests, purchase forest outright, or have forest donated to them from an estate.
As with a family trust, the options here get more complex. The starting point is the same though: what do the owners want to do? Do they wish to remain on the land until they pass? Do they wish to donate all or part of the woodland, but keep the house and the fields? As in all cases, the plans for the future are the owners’ to make. From there, they can find an exact fit, negotiate an agreeable one, or look to other options. (READ MORE) |
|
Will: A last will and testament is the simplest and least expensive method of active estate planning. While traditional wills divide assets like stocks and bonds equally among heirs, a forest is a somewhat non-traditional part of an estate. The forest holds an economic function, but also provides environmental benefits too, like being a source for clean air, clean water, and wildlife habitat. A subdivided forest loses its value as a functioning ecosystem if the use of smaller, separately owned parcels changes over time. Balancing fairness to heirs with other goals may require a serious discussion. (READ MORE)
Limited Liability Company: Family members can join together to form a Limited Liability Company (LLC) around the family forest. All the members of the LLC become “shareholders” in the forest, just as if owning stock in a family corporation. Unlike stocks, the shares can’t move out of the family, however. (READ MORE)
Conservation Easement: A conservation easement lets landowners maintain ownership of the land, typically in exchange for selling the development rights. Easements can be permanently or for a specified period of time (15 years, for instance). The easement is typically paid for by another party, providing the landowners some financial security, as well as peace of mind as to the future of their forest. The plans for the future are the owners’ to make. From there, they can find an exact fit, negotiate an agreeable one, or look to options other than an easement. (READ MORE)
Public Landholders: A curious fact is that land adjacent to or within the proximity of conservation land is more at risk for development than other rural land. Forest owners abutting or near National Forests or other conserved land can consider donating their land, donating with stipulations, or selling their land to the public landholder. This choice has the environmental benefit of keeping large, contiguous forests intact, so they may continue their environmental function. (READ MORE) |
