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• The decedent or a member of the purposes, or to foster national or Line 5 decedent’s family must have owned the international amateur sports The amount on line 5 should be the land for the 3-year period ending on the competition, or for the prevention of date of death value of any qualifying date of the decedent’s death. cruelty to children or animals, without conservation easements granted prior • No later than the date the election is net earnings benefitting any individual to the decedent’s death, whether made, a qualified conservation shareholder and without activity with granted by the decedent or someone easement on the land has been made the purpose of influencing legislation or other than the decedent, for which the by the decedent, a member of the political campaigning, which exclusion is being elected. decedent’s family, the executor of the a. Receives more than one-third of Note. If the value of the easement decedent’s estate, or the trustee of a its support from gifts, contributions, reported on line 5 was different at the trust that holds the land. membership fees, or receipts from time the easement was contributed • The land is located in the United sales, admissions fees, or performance than at the date of death, see the States or one of its possessions. of services, or Caution at the beginning of the b. Is controlled by such an Member of Family Schedule U Instructions. organization. Members of the decedent’s family Line 7 • Any entity that qualifies under section include the decedent’s spouse; You must reduce the land value by the 170(b)(1)(A)(v) or (vi). ancestors; lineal descendants of the value of any development rights decedent, of the decedent’s spouse, Conservation purpose. An easement retained by the donor in the and of the parents of the decedent; and has a conservation purpose if it is for: conveyance of the easement. A the spouse of any lineal descendant. A • The preservation of land areas for development right is any right to use legally adopted child of an individual is outdoor recreation by, or for the the land for any commercial purpose considered a child of the individual by education of, the public; that is not subordinate to and directly blood. • The protection of a relatively natural supportive of the use of the land as a habitat of fish, wildlife, or plants, or a Indirect Ownership of Land farm for farming purposes. similar ecosystem; or The qualified conservation easement Note. If the value of the retained • The preservation of open space exclusion applies if the land is owned development rights reported on line 7 (including farmland and forest land) indirectly through a partnership, was different at the time the easement where such preservation is for the corporation, or trust, if the decedent was contributed than at the date of scenic enjoyment of the general public, owned (directly or indirectly) at least death, see the Caution at the beginning or under a clearly delineated federal, 30% of the entity. For the rules on of the Schedule U Instructions. state, or local conservation policy and determining ownership of an entity, see You do not have to make this will yield a significant public benefit. Ownership rules below. reduction if everyone with an interest in Ownership rules. An interest in the land (regardless of whether in Specific Instructions property owned, directly or indirectly, by possession) agrees to permanently or for a corporation, partnership, or trust extinguish the retained development Line 1 is considered proportionately owned by right. The agreement must be filed with If the land is reported as one or more or for the entity’s shareholders, this return and must include the item numbers on a Form 706 schedule, partners, or beneficiaries. A person is following information and terms: simply list the schedule and item the beneficiary of a trust only if he or 1. A statement that the agreement numbers. If the land subject to the she has a present interest in the trust. is made under section 2031(c)(5); easement is only part of an item, For additional information, see the 2. A list of all persons in being however, list the schedule and item ownership rules in section 2057(e)(3). holding an interest in the land that is number and describe the part subject to subject to the qualified conservation Qualified Conservation the easement. See the Instructions for easement. Include each person’s Schedule A—Real Estate for Easement name, address, tax identifying number, information on how to describe the A qualified conservation easement is relationship to the decedent, and a land. one that would qualify as a qualified description of their interest; conservation contribution under section 3. The items of real property shown Line 3 170(h). It must be a contribution: on the estate tax return that are subject Using the general rules for describing • Of a qualified real property interest, to the qualified conservation easement real estate, provide enough information • To a qualified organization, and (identified by schedule and item so the IRS can value the easement. • Exclusively for conservation number); Give the date the easement was purposes. 4. A description of the retained granted and by whom it was granted. Qualified real property interest. A development right that is to be qualified real property interest is any of extinguished; Line 4 the following: 5. A clear statement of consent that Enter on this line the gross value at • The entire interest of the donor, other is binding on all parties under which the land was reported on the than a qualified mineral interest; applicable local law: applicable asset schedule on this Form • A remainder interest; or a. To take whatever action is 706. Do not reduce the value by the • A restriction granted in perpetuity on necessary to permanently extinguish amount of any mortgage outstanding. the use that may be made of the real the retained development rights listed in Report the estate tax value even if the property. The restriction must include a the agreement and easement was granted by the decedent prohibition on more than a de minimis b. To be personally liable for (or someone other than the decedent) use for commercial recreational activity. additional taxes under section prior to the decedent’s death. 2031(c)(5)(C) if this agreement is not Qualified organization. A qualified implemented by the earlier of: organization includes: Note. If the value of the land reported • Corporations and any community on line 4 was different at the time the • The date that is 2 years after the chest, fund, or foundation, organized easement was contributed than that date of the decedent’s death or and operated exclusively for religious, reported on Form 706, see the Caution • The date of sale of the land subject charitable, scientific, testing for public at the beginning of the Schedule U to the qualified conservation safety, literary, or educational Instructions. easement; -39- Part Instructions