Environmentally Responsible and Sustainable Land Management

Introduction

The Michelotti case study property has been owned by the family since 1940. Increases in tax and maintenance liability over the next forty year period became too much for the sole owner and she looked for family buyers. The property was purchased by John and Carroll in 1986 in an effort to save and benefit the property and buildings for current and future family use.

Challenge

Even though funds were available to finance the purchase of the property and the subsequent improvements, John and Carroll felt the burden of the ongoing tax and maintenance responsibilities. Further, with recent tax increases on the 103 acre holding, they were worried that future generations could be strapped with a financial load far more severe than the current level. How were they going to minimize future financial liability to their heirs while preserving the undeveloped nature of the land and the holding itself?

Resolution

The family signed a conservation easement with the New York State Department of Environmental Preservation. This provided the opportunity to reduce carrying costs for the land immediately and in the future. In addition, the beneficial tax affects associated with the easement enabled John and Carroll to entertain an array of estate planning options that they did not have before. The results of this planning led to a sustainable and environmentally responsible model that satisfied the owner’s goals for the property, while benefiting the local land conservation effort and economy in perpetuity.