--- title: Land Trust | What Is It, Who Needs It, & How to Create One description: Learn about land trusts, what they are, how they work, who needs them, and how to create one. Also, learn about its purpose, types, pros, and cons. image: https://www.carboncollectiveinvesting.com/hubfs/Land_Trust_-_FI.png --- [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo-white.4f6047d4.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo.53b28bee.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) **[Home](https://www.carboncollectiveinvesting.com/) > [Sustainable Investing](https://www.carboncollectiveinvesting.com/sustainable-investing) >** Land Trust # Land Trust ![](https://www.carboncollectiveinvesting.com/hubfs/Brooke%20Tomasetti.png) Written by Brooke Tomasetti | Reviewed by [Subject Matter Experts](https://www.carboncollectiveinvesting.com/subject-matter-experts) Updated on October 1, 2024 Fact Checked Why Trust Carbon Collective? ### Table of Contents ## **What Is a Land Trust?** A land trust is a legal entity that owns and manages land for the benefit of the public, a specific group, or an individual. Land trusts are created for various reasons, including protecting important [natural resources](https://www.fs.usda.gov/managing-land/natural-resources), providing public access and recreational opportunities, preserving historic sites, or allowing property owners to keep their land in its natural state while ensuring it will not be developed. ## **How Does a Land Trust Work?** A land trust is a nonprofit organization that holds title to land or easements. The trust may be created by a donor who wishes to donate land, an easement, or by the trust itself. A board of directors governs the trust, and the land is managed according to a plan approved by the board. The trust may own the land outright or hold an easement, which is a legal agreement that gives the trust the right to use the land for specific purposes. The trust may also manage land owned by other entities, such as a municipality or a state. ## **Types of Land Trusts** There are two main types of land trusts: ***conservation easement trusts*** and ***title-holding trusts***. A conservation easement trust holds an easement on land owned by someone else. The easement may be perpetual, or it may expire after a certain number of years. The owner of the land retains the ownership of the land, but the easement restricts the use of the land to protect it. A title-holding trust owns the land outright. The land may be donated to the trust, or the trust may purchase the land. Once the trust owns the land, it is protected from development and managed according to its plan. ## **Who Needs a Land Trust?** Land trusts are created for a variety of reasons. Some land trusts are created to protect important natural resources, such as forests, wetlands, or drinking water sources. Other land trusts are created to provide public access and recreational opportunities, such as hiking trails or parks. Still, other land trusts are created to preserve historical sites or allow property owners to keep their land in its natural state while ensuring it will not be developed. ## **Purpose of a Land Trust** The purpose of a land trust is to protect land for the benefit of the public, a specific group, or an individual. A land trust may be created for several reasons, including protecting important natural resources, providing public access and recreational opportunities, preserving historic sites, or allowing a property owner to keep their land in its natural state while ensuring it will not be developed. ## **How to Create a Land Trust** A few steps need to be taken to create a land trust. First, the governing board of the trust must be established. The board of directors will oversee the trust's management and ensure that the trust is meeting its objectives. Next, the land must be acquired by the trust. The land may be donated by a private owner, purchased by the trust, or given to the trust through a conservation easement. Finally, the management plan for the trust must be created. The management plan will outline how the trust will meet its objectives and take care of the land. Creating a land trust is a great way to protect land for the future. ## **Pros and Cons of a Land Trust** There are both pros and cons to creating a land trust. ![Pros_and_Cons_of_a_Land_Trust](https://www.carboncollectiveinvesting.com/hs-fs/hubfs/Pros_and_Cons_of_a_Land_Trust.png?width=1920&height=1080&name=Pros_and_Cons_of_a_Land_Trust.png) ## **The Bottom Line** A land trust is a great way to protect land for the future. If you are considering creating a land trust, weighing the pros and cons is important to see if it is the right decision for you. Land trusts can be a great way to protect land, but some potential drawbacks should be considered. Ultimately, the decision of whether or not to create a land trust is up to the property owner. ## **FAQs** ### **1. What is a land trust?** A land trust is an organization that protects land for the benefit of the public, a specific group, or an individual. ### **2. What are the two types of land trusts?** There are two types of land trusts: title-holding trusts and easement-holding trusts. ### **3. Who needs a land trust?** Land trusts are created for a variety of reasons. Some land trusts are created to protect important natural resources, such as forests, wetlands, or drinking water sources. Other land trusts are created to provide public access and recreational opportunities, such as hiking trails or parks. ### **4. How is a land trust created?** A land trust is created by establishing a governing board of directors, acquiring the land, and creating a management plan for the trust. ### **5. What are the pros and cons of a land trust?** Some pros of a land trust include that the land is protected from development and that the land is managed according to a plan. Some of the cons of a land trust include that the trust may not have the funds to purchase the land outright and that the management plan may be difficult to implement. ### Related Topics - [Sustainable 401(k) Plan](https://www.carboncollective.co/401k) - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing/) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Retirement Glossary](https://www.carboncollective.co/sustainable-investing/retirement-planning-glossary) - [Best Retirement Plans](https://www.carboncollective.co/sustainable-investing/the-10-best-retirement-plans) - [Wealth Manager Vs Financial Advisor](https://www.carboncollective.co/sustainable-investing/wealth-manager-vs.-financial-advisor) ![Attend Our Next Webinar](https://www.carboncollectiveinvesting.com/hubfs/carbon-collective-green-investing-icon-webinar.12af7b6e.svg) ### Attend Our Next Webinar Join our next Sustainable Investing 101 webinar, get our favorite DIY options, and walk through how we build our portfolios. 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