How does the donation of a preservation agreement affect estate taxes?
The donation of a preservation agreement–whether made during a landowner’s life or by bequest–can reduce the value of the estate upon which taxes are calculated. In some cases, the value of an estate after an easement donation may fall below the lifetime exemption so that estate taxes are avoided. Good planning is necessary to ensure that heirs of estates that include property receive maximum tax advantages. If you want to know more about the advantages of a CE for estate planning purposes, talk to your attorney or financial advisor. For more information about the tax benefits of preservation agreements, see this article by Timothy Lindstrom, Esq. from the Michigan Bar Journal.
