A conservation easement is a legal agreement between a landowner and a land trust or government agency. Land uses are permanently limited in order to protect conservation values. It allows you to continue to own and use your land and to sell it or pass it on to heirs.

Easements are flexible and can be designed to meet the needs of the landowner as long as the natural resources are protected. An easement on forested land may include rights for the owner to build a house while disallowing a development. Farms generally retain the rights to keep farming. Easements are generally granted in perpetuity, though on rare occasions they can be designated for a set number of years. An easement may apply to just a portion of the property, and does not require public access.

Conservation easements are usually donated, though landowners occasionally sell an easement. If the donation is beneficial for permanently protecting conservation resources and meets other federal tax code requirements it can qualify as a tax-deductible charitable donation, offering potential for substantial income tax benefits. The amount of the donation is the difference between the land's value with the easement and its value without the easement. Placing an easement on your property may or may not result in property tax savings depending upon your location.

Also important is the fact that a conservation easement can be essential for passing land on to the next generation. By removing the land's development potential, the easement lowers its market value, which in turn lowers estate tax. Whether the easement is donated during life or by will, it can make a crucial difference in the ability of the heirs to keep the land intact.