• What Is A Bequest?
• I'm Not Wealthy, Can My Bequest Still Make A Difference? 
• I have a will. Do I need anything else? 
• Can bequests be handled in living trusts? 
• What happens to my personal possessions? 
• If a trust agreement is established as irrevocable, it means that it can't be revoked (broken) except under unusual circumstances. Why would anyone want an irrevocable trust? 
• What is the difference between a charitable remainder unitrust and a charitable remainder annuity trust? 
• What happens to my assets in a trust for a charity if the charity goes out of business before the expiration of the trust? 
• Should I name a charity as trustee of my charitable remainder trust? 
• How often should I update my will or trust? 
• Can I use my insurance to benefit charitable organizations? 
• How can I fund a charitable gift annuity and how is my income calculated? 
• Can I set up a charitable gift annuity and delay the start of the income until I will more likely need it, such as at my retirement, when my income is lower? 

Frequently Asked Questions: Donations through Wills and Bequests 

What Is A Bequest? Bequests are the actual gift disbursals that result, upon one's passing, from a specifically worded commitment in wills or trusts. Bequests are unlike any other gifts we receive because they represent individuals' final statements about what is most important to them. Every bequest is a powerful expression of loyalty, good will, and faith in the future of us and our mission.

I'm Not Wealthy, Can My Bequest Still Make A Difference? You do not have to be wealthy to create a legacy. A bequest of any size can be significant in helping to preserve our mission and our reach. If a trust agreement is established as irrevocable, it means that it can't be revoked (broken) except under unusual circumstances.

I have a will. Do I need anything else? In addition to a will, most experts recommend that you have a durable power of attorney, which allows another person to act on your behalf should you become incapacitated. Also, a living will is helpful to your heirs in that it directs at which point you do not want your life artificially supported.

Can bequests be handled in living trusts? Certainly. You may wish to consider a living trust as an estate planning tool. More information is available. Living trusts may be either revocable or irrevocable and there are advantages and disadvantages to consider in both.

What happens to my personal possessions? Personal possessions are best distributed through a tangible personal property memo in which you list the personal items you wish to give to specific people. Your will must mention the existence of this memo and you should keep a copy of it with your will.

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Frequently Asked Questions: Trusts 

If a trust agreement is established as irrevocable, it means that it can't be revoked (broken) except under unusual circumstances. Why would anyone want irrevocable trusts? There are always specific reasons for making an irrevocable trust agreement. Perhaps it involves a family business where some of the family members are getting on in years and the family wants to make certain that management continues to run smoothly even if hindrances, such as senility, enter the picture.  Many times the reasons for irrevocable trusts involve estate and/or income tax avoidance. In order to be successful in such avoidance, the trustor must not have any direct or indirect power or control over the trust property or income. The regulations on this subject, set out in the Internal Revenue Code, must be carefully followed.

What is the difference between a charitable remainder unitrust and a charitable remainder annuity trust? The major difference is in the valuation of the assets of the trust, which establishes part of the calculation for the determination of the amount of income received by the income beneficiary(-ies). The annuity assets are valued at the time the assets are placed in the trust and are never revalued. Annual payments remain the same, whether the assets appreciate (increase in value) or decline (lose value).  The assets in the unitrust are revalued annually. If the trust assets appreciate, the payment to the income beneficiary(-ies) will increase. If the trust assets depreciate, the payment will decrease.

What happens to my assets in a trust for a charity if the charity goes out of business before the expiration of the trust? Your trustee is authorized to name a substitute, if that is the sole charity.

Should I name a charity as trustee of my charitable remainder trust? This is often done if the organization is qualified to so act under local law. The organization's representatives can satisfy you in that regard. Often they will serve without fee, which is an additional incentive.

How often should I update my will or trusts? These documents should be updated any time your financial or your family circumstances change. As laws vary from state to state, if you move you should have an attorney licensed in and familiar with the new state's laws review your will or trust agreement. It is always wise, even if there are not any significant changes in your circumstances, to periodically review these important documents. A good rule of thumb is to review your will every three years.

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Frequently Asked Questions: Life Insurance and Charitable Gift Annuity

Can I use my insurance to benefit charitable organizations? Yes. This is an area overlooked by many. You can name one or more charities as alternate or as primary beneficiary. Furthermore, if you no longer need the policy proceeds in your estate for use now, you can transfer ownership of the policy to the charity or charities. If the policy has cash loan value, the charity can draw this out and use it. In this case, you not only receive a charitable gift deduction, but any additional premiums you pay are tax deductible for you now. And, on your death, the charity receives the balance of the policy proceeds and none of it is included in your estate for tax purposes.

How can I fund a charitable gift annuity and how is my income calculated? The usual funding sources for a charitable gift annuity are cash and marketable securities. There can be tax benefits associated with donations of appreciated securities (the current market value exceeds the cost or basis value). As a gift annuity is considered partially a gift and partially an annuity, part of the gift avoids capital gains tax entirely. Real estate and other marketable assets may also be used. Generally, the charity will convert the assets to cash to fund the annuity.

The income provided you by the annuity is determined by your age and the age of any additional beneficiary and is calculated using tables established and filed with regulatory agencies under which the charity operates its annuity program.

Can I set up a charitable gift annuity and delay the start of the income until I will more likely need it, such as at my retirement, when my income is lower? Yes, there is flexibility in the establishing of a charitable gift annuity that makes them a popular and effective retirement planning vehicle. Using a deferred gift annuity, the annuity earnings accumulate on a tax-deferred basis. Thus the deferred payment annuity accomplishes several things. First, the donor receives a tax deduction in the year the annuity is established, which is usually when the donor is in a higher tax bracket. Secondly, the gift to the charity becomes larger as the deferred earnings increase the annuity's principal. Finally, since the deferred payment annuity grows in size while income is deferred, the ultimate income will be more per year.

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This is a confidential record. In order that we may include you in our planned giving society and properly thank you and acknowledge your gift, please fill out the following information which applies to your future gift of a bequest through your Will or Trust.

If you would prefer to fax or mail this information to us, please use our printable estate intention form.

I look forward to talking with you about this gift intention. I understand that listing this gift may be an incentive for others to give and I am willing to be publicly acknowledged in the planned giving society.

I understand you would like to contact me about this gift intention and I would be happy to discuss this with you, but I prefer not to be listed or acknowledged publicly in the planned giving society.

My Will or Trust was signed on:

My Will or Trust provides that % shall be bequeathed to the Brighton National Addiction Foundation through my estate. As of today's date, I estimate that the value of this provision in my estate plan would be approximately $ . 

My Will or Trust provides that $ shall be bequeathed to the Brighton National Addiction Foundation through my estate.

My Will or Trust provides that certain items of real or personal property shall be bequeathed to the Brighton National Addiction Foundation through my estate. The items are as follows:

As of today's date, I estimate these items to be worth approximately $ . 

My Will or Trust indicates that the bequest through my estate is unrestricted.

My Will or Trust directs the Brighton National Addiction Foundation to use my bequest through my estate for a specific purpose.  The specific purpose is as follows:

I understand that I am not making a legal or binding commitment upon my estate by submitting this Estate Intention Form. Further, the Brighton National Addiction Foundation should understand that the size of my future gift might be significantly different from the amount estimated above. If for any reason in the future the Brighton National Addiction Foundation is no longer included in my estate plan, I will notify you so that you can update your records and remove me from your planned giving society.

How can you help in the fight against addiction with your charitable giving activities?   

The Brighton National Addiction Foundation (BNAF) seeks your charitable giving to support its fight against all forms of substance abuse.  Dedicated to the mission of Brighton Hospital, one of America’s oldest and most experienced substance abuse treatment facilities and the first to be licensed in Michigan, the Foundation offers ways for individuals, corporations and grant makers to invest in our national leadership through planned giving activities.  Your donations, gifts, and trusts allow us to continue to be a leading source of hope through prevention, patient care, aftercare, education and research. By including the BNAF in your charitable giving plans, you can play a pivotal role in the fight against chemical dependency.  There are many philanthropic opportunities available for you to be part of the solution.

It is with great pleasure that Brighton Hospital welcomes the philanthropic leadership of the Brighton National Addiction Foundation.

"Brighton Hospital has had strong relationships with families throughout the United States and Canada for many years", comments Richard Kramer, President of the BNAF.  "These relationships, built on the importance of effective 12 step recovery programs and innovative treatments of these chronic diseases, are vital to the continual success of the hospital."

• Build and expand our health care facilities.  Our campus exceeds 90 acres including Lake Serenity, wooded areas, and historic structures.  Treatment facilities all need updating and restoration to keep pace with hospital innovations and planned expansion.
• Help patients who need added days of rehabilitation.  In the world of alcohol and substance abuse, detoxification, and rehabilitation, research has shown a clear correlation between the length of stay in a rehabilitation center and the long-term success of the patient’s recovery.  Insurance carriers, however, do not reimburse behavioral health and rehabilitation from substance abuse as generously as they cover a patient’s medical and surgical needs.  The Patient Extended Care fund provides for this gap.
• Provide continuing education opportunities for our drug and alcohol treatment staff.  Inaugurated in 2006, the Brighton Hospital Addiction Fellowship is America’s first clinically based addiction fellowship program.  It increases the quality and quantity of medical staff and supports our vision as a national center of excellence and an innovator in alcohol and drug treatment and education.
• Help collaborate research programs with leading medical and nursing schools.  Funds are needed to sponsor research programs while they develop the resources needed to apply for extramural grants from government agencies and foundations.
• Provide scholarships for our youth drug and alcohol treatment services.  Through regional partnership, the Teen Drug Rehab Program enables more teens, ages 13-17, and their families to get the help they desperately need.  Scholarships provide assessment, intensive outpatient treatment for three months and aftercare.
• Fund and continue a variety of other programs, such as our clergy recovery series, our 30-day residential treatment series, our halfway house expansions, the restoration of our 1939 Ludington Peace Center, and the planned relocation and expansion of the gift shop and bookstore, all which keep our hospital a leader in drug and alcohol treatment, and the rehabilitation center of choice over other highly regarded chemical dependency hospitals.

Thank you so much for your interest in the Brighton National Addiction Foundation and supporting our charitable mission through planned giving.  For more information on planned gifts through wills and bequests, real estate, retirement assets, charitable lead trusts, appreciated stock, charitable remainder trusts and life insurance, contact foundation@brightonhospital.org.  Supported by your charitable giving, we will build upon this lead for the sake of all who look to us for caring, compassion and clinical excellence in the face of addiction, a life-threatening, chronic disease.

The Brighton National Addiction Foundation is a 501(c)(3) organization as classified by the Internal Revenue Service. Contributions are tax-deductible to the limits allowed by law for non-profit donations.  Organizations exempt under section 501(c)(3) are further classified as either public charities or private foundations.  The BNAF is treated as a public charity and is qualified to receive tax-deductible bequests, devises, transfers and gifts. 

Brighton Hospital is located in the Metro Detroit area of Michigan (MI).  We provide drug and alcohol treatment to individuals all over the U.S. and Canada.  We see many patients from the greater Detroit area of Michigan (MI), the greater Chicago area of Illinois (IL), northern Indiana (IN), and the greater Cleveland area of Ohio (OH).  We have been a beacon of hope for individuals struggling with chemical dependence in the Midwest for more than 50 years.

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