LAND TRUST NEWS

"From the Maine Woods to the desert of the Baja California in Mexico, from the "last frontier" of Alaska to the swamps of Southern Florida, this presentation highlights the wide variety of wildlife we enjoy today in North America.

Close up and personal, Bill presents some of his favorite images of grizzly bears, gray whales, desert coyotes, Dall sheep, colonial nesting seabirds, bald eagles and many other species. The show includes a sneak preview of images of common loons and monster moose from his two books to be published in the spring of 1998.

Sprinkled with comments about the places where these animals live and why they're special, this slide presentation will make you appreciate our wildlife resources all the more.

Bill Silliker, Jr., founder and first president of the Friends of Rachel Carson National Wildlife Refuge is also our neighbor (Ocean Park) and has many credits to his name - here are some highlights:

Bill photographs wildlife and nature. His images appear in AMC Outdoors, Backpacker, Down East, Ducks Unlimited, Maine Fish and Wildlife, National Wildlife, Nature Photographer, Willow Creek publications and many others. He writes about photography and nature in columns that appear in The Maine Sportsman, the Bangor Daily News and the Outdoor Photographer.

Bill has written three books, the Maine Moose Watchers Guide published in 1993 (it sold out and was reissued) and the soon to be released Moose: Giants of the North Forest and Just Loons. He has produced several videos: You Just Have to Love Bears, Maine's Magnificent Moose, and two Spring 1998 releases, Loons of the Northern Forest and Seabirds of the Maine Coast.

Bill also hosted and co-produced "Special Places", a show featuring natural resource sites in Maine that aired weekly on Maine Public Television from 1995-97.

Join us for this not to be missed presentation! New Tax Incentives for Land Conservation by Karin Marchetti, Maine Coast Heritage Trust General Counsel

Since the early 1970's, conservation easements have been an effective tool in preserving land and keeping it in family ownership. An easement can often reduce the value of land to near or below the $600,000 gift and estate tax exclusion, helping families that might otherwise need to sell the land just to pay the estate tax. However, over the years the value of land has increased significantly. Even property under easement may trigger such high estate taxes that it will have to be sold out of the family.

The Taxpayer's Relief Act of 1997 includes an important amendment to the "American Farm and Ranch Protection Act" that will help families remedy their estate tax problem and retain their protected land.

Here's a simplified outline of the amendment. If, after January 1, 1998, a person dies owning land that: 1) is located within a specified geographic area; 2) has been in the family for at least three years; and 3) is subject to a qualified conservation easement placed by the decedent or a member of the family, then up to 40% of the value of the protected land can be excluded from the estate tax.

This new exclusion is generally in addition to the estate tax savings already available for the original reduction in land value due to the easement. This exclusion is also available if the land is owned by a partnership, corporation, or trust, as long as the decedent owned at least 30% of the entity. There are several limitations governing eligibility and the scope of the benefit. Some of these are quite clear, others will require clarification by IRS regulation or future technical amendments.

Geographic Limitations. The land must be located within 25 miles of a "metropolitan area", "national park" or "wilderness area". (Scarborough qualifies.)

Exclusion Limitations. The maximum exclusion per estate of $100,000 in 1998, will increase by an additional $100,000 each year, up to $500,000 for the year 2002 and thereafter. In order to ensure the easements are meaningful, the full 40% reduction is available only for easements that reduce the value of the land by at least 30%.

The exclusion is unavailable if more than the minimal commercial recreational activity is permitted. The 40% reduction is applied to the value of the protected land and not to "retained development rights". Commercial farming and forestry are allowed , but the treatment of residences requires some clarification.

The exclusion reduces the heirs' otherwise "stepped-up" basis in the property for determining the gains on future sales.

Post Mortem Election. The heirs may have the opportunity to increase the value of the exclusion for a preexisting easement, post mortem, by filing a binding agreement with the estate tax return, to extinguish "retained development rights" within two years. The executor can also secure the 40% exclusion post mortem, by placing a new easement on eligible property within the filing period, usually within nine months after death. This can be accomplished with the consent of all heirs, or by directions in the will, subject to any state fiduciary law restrictions. There are other parts of the act that will also affect conservation and estate planning.

Capital Gains. The new capital gains tax rate varies, depending on the holding period. Appreciated assets held 18 months or longer are now eligible for a 20% capital gains tax rate, (down from 28% for 12-month assets). Assets purchased after 2000 and held for at least 5 years will be taxed at only 18%. Despite the new holding rules for capital gains, only a 12-month holding period is required for deducting the full value of gifts of appreciated property to public charities and private operating foundations, such as land trusts.

Estate Taxes. The unified estate and gift tax credit, which previously exempted up to $600,000 in gifts and bequests, is increased annually incrementally until it reaches $1,000,000 in 2006 and thereafter. The exemption for qualifying family-owned businesses is increased immediately to $1,300,000. Principal residences (including qualifiying second homes) may now be sold without tax, and without a rollover requirement, on up to $250,000 of the profit, ($500,000 for joint return filers). This exemption can be applied to the sale of a "remainder interest" in a principal residence , which may help landowners to make lifetime gifts of property to conservation organizations, reserving the a life estate that allows them to remain on the land.

Reprinted with permission from the Maine Coast Heritage Trust

Consider SLCT in Your Will

SLCT member Attorney David Beneman has generously offered his legal services at significantly reduced cost to SLCT members and their families who would include contributions of any type to the Trust as part of their will or estate plan. If interested, contact David Beneman at Levenson, Vickerson and Beneman, 775-5200 or contact David by e-mail: [email protected].

Berger Foundation Funds Working

As you recall, Camp Ketcha and the SLCT, together, were awarded $25,000 matching funds grant from the Berger Foundation last fall for the purposes of land stewardship activities and environmental education programs for the Libby River Farm, and Camp Ketcha facilities renovation.

The SLCT will undertake its first major stewardship project in late spring, early summer. The national AMERICORPS program is assigning a team of college age workers to assist the SLCT in preparing the Libby River Farm for use by adults and students who wish to study the environment, wildlife or enjoy the area for passive recreation.

The Americorps team will be under the technical supervision of Steve Ross , SLCT Trustee and professional surveyor, and Rene Noel, Jr., professional forester. The tasks include brushing out and marking approximately 3000' of property boundary; creating, improving and marking approximately 1000' of trails; locating bumpers for a joint SLCT/Ketcha parking lot; and the forest management tasks of tree marking, cutting, thinning and pruning crop trees.

This is an exciting project that we're pleased to get underway. SLCT Trustees will be volunteering their time and would welcome any individual or community group that would like to assist.

SLCT Awarded $5000 Davis Foundation Grant

In October of 1997 the SLCT submitted a grant application to the Davis Conservation Foundation which focuses on funding projects in the Gulf of Maine to promote "the wise utilization, protection and advancement of our physical environment and the different natural forms of life which inhabit it - including wildlife, sea life, and mankind as they are impacted by the environment".

The purchase of the Libby River Farm and our partnership with Camp Ketcha to develop environmental education programs and facilities is consistent with the Davis Foundation philosophy. The $5000 award will be applied to the Libby River Farm purchase fund.

Libby River Farm Update ... WOW!

To date, the SLCT has raised $356,187 towards the purchase of the Libby River Farm - up $35,452 since October 1997. The $356K still does not include the be received $57,000 grant from the Maine Outdoor Heritage Fund or the $5000 grant from the Davis Conservation Fund. When these funds are received, our balance for the Libby River Farm will be approximately $57,000. We've come a long way!

We cannot say 'Thanks' enough to all who have made this project possible! It has only been with your support that the SLCT is succeeding at providing such a unique conservation area for us all to enjoy...and soon!

In the meantime, our grant writing and fund raising efforts continue. Perhaps our hardest work is yet to come.

January will be a busy month for trail activities. First, and finally, the much needed and long overdue repairs to the Eastern Trail are underway. One of the two Willowdale pond area washouts has been repaired, the second washout repair is in progress. The trail will be in great shape for spring use!

Trail meetings are scheduled with the South Portland and Saco/Old Orchard Beach Land Trusts and Trail groups. Both South Portland and Saco/Old Orchard Beach organizations are eager and poised to become connected to the Old Eastern Trail to effectively extend trail use for all of us. The Maine Bicycle Coalition is most interested in our efforts and will also be hosting their own conference which the SLCT will attend.

Finally, and probably most exciting, is that northeast region trail organizations will be meeting early February with the East Coast Greenway Trail Organization - the group interested in creating a Maine to Florida trail. Portions of the route are in place and the group is encouraged by the trail activity in southern Maine.

Membership Drive a Success

Thanks to all of you who have become new members or have renewed your membership. We are please to welcome 79 new members and look forward to meeting you at future SLCT functions. Anyone interested is welcome to attend our monthly Board of Trustees Meeting at the home of Shirlee Withee on Milliken Road.

You can still become a member. Your membership is the best way to demonstrate a commitment to land conservation in the new year!. A broader membership appeal will be mailed at the end of February. If you receive a duplicate mailing, our apologies, it was merely a cross referencing oversight. Your membership dollars really do make a difference.

SCARBOROUGH LAND
CONSERVATION TRUST
P.O. BOX 1237
SCARBOROUGH, ME 04070-1237
how to contact