Owners of historic landmarks often devote considerable time and effort to the restoration maintenance of their homes, gardens, and architectural details in a manner compatible with their properties, historic period and architectural styles.  A preservation easement is a means by which you, as owner of historic property, can be assured of continued preservation after the property passes from your stewardship, as well as realize significant federal income, state and local tax savings.

Frequently Asked Questions

What is a preservation easement?
A preservation easement is a legal document which regulates the use of, or changes to, your property.  Once imposed, it "runs with the land" in perpetuity, requiring present and future owners to abide by its terms.  A preservation easement may be drafted to prohibit alterations to the facade of your home, or to eternally maintain your garden as part of your home.  A preservation easement is the most effective long-term protection for historic property in private ownership.

Who will hold the preservation easement?
The Alabama Historical Commission, a nonprofit, governmental organization established by the State of Alabama, among other things to preserve historic architecture and landscapes, is empowered to hold the easement.

By designating the Alabama Historical Commission as holder of the preservation easement, you are assured the availability of preservation technicians to share responsibility for future stewardship of your property. The Commission will monitor the physical condition of the structure, note changes since the last inspection, and identify potential problem areas which, if left unchecked, could result in serious damage to the historic character of the property.

What are the tax benefits of preservation easements?
There are several important federal income, gift and estate tax benefits available to an easement donor, as well as state and local tax consequences.  For federal income tax purposes, a charitable deduction in most cases may be taken for the value of the easement donated to the Commission, typically up to 30% of your adjusted gross income.  Any remainder may be carried forward and used in subsequent tax years for up to five years.  The federal estate tax obligation for heirs of your property may be lessened because of the easement.  State income and estate tax savings may be realized.  Local real estate tax savings may also be achieved.  

What steps must be taken to acquire a preservation easement?
There are only four steps that must be taken in order to preserve your property in its historic condition. These are:

1.  Acquire a legal description of the property you own.  You can do this by contacting the County Tax Assessors Office, or you will find it in your mortgage papers (a legal description of your property will be included in your deed.)]

2.  Write out what it is you wish to be covered by the easement.  The easements that are accepted by the Commission are those that are made in perpetuity, but other than that you may choose and state exactly what you want included in the easement.  Do you want to protect the facade of your home?  The interior woodwork and other significant features?  Your landscape gardens?  Surrounding fields and/or woodlands?  Only part of the physical setting?  Do you wish to reserve part of the historical setting because you plan to build something there?  If so, include your reservation in what you are writing.

There is one minor right you must grant, and that is to allow a public viewing of your property.  This, however, can be for as small a period as one day, once a year, and open only to qualified persons.

You can also state in the easement what would happen in case of fire, so it is clear that neither you nor the successors in ownership are required to restore something destroyed by fire.  Remember, this is a private contract and you can write it to fit your needs and desires.

3.  Contact the Alabama Historical Commission by calling 334-242-3184. The Commission will discuss the proposal with you and determine whether they can accept an easement on it.  Once they approve the easement, the Commission will draft the necessary legal documents at no charge to you.

4.  When the documents are finalized, the Commission will file the easement in the appropriate legal repository, usually the county courthouse, where it will become public record.  Your property will then be protected...and you will make a difference in history.