Hudson Valley
Estate Planning
Secure Your Legend
“Yellowstone” Estate Planning: Worth a Rip?
As fans of the TV show “Yellowstone” know, estate planning has been a running theme throughout the show’s current season (Season 5). One particular mechanism used–the conservation easement–deserves particular attention.
To ensure his family’s ranch stays whole, patriarch John Dutton–played by Kevin Costner–opted to place his land in a conservation easement. The easement was intended to prohibit further development of the land. In addition to achieving conservation goals, the economic benefits of placing one’s land in conservation easement can be significant. Most notably, you can generally receive a federal tax deduction equal to the difference of the value of the land before and after it was placed in the easement (fewer development rights = less value for the land), up to 50% of your adjusted gross income. The tax deduction can be carried forward up to 15 tax
years, enabling you to reduce your income tax burden in multiple years. In addition, by bringing down the value of your land via the easement, you also bring down the value of that land as part of your taxable estate. This helps you avoid estate taxes.
To receive these benefits, federal law generally requires to work with a land trust, who in turn will be responsible for enforcing the easement. If you are interested in pursuing a conservation easement, I’d be happy to represent you in your relationship with a local land trust. Click here to book your free consultation.
