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Give · Grow · Get Back

Give Generously.
Grow Your Family Wealth & Legacy.

The OCLAT is the only philanthropic vehicle that delivers a full tax deduction today, funds your chosen charities for decades, and returns the principal — plus growth — to your heirs. You give, it grows, you get it back.

The Problem

Philanthropy Shouldn't Mean Choosing

Most affluent families want to give generously. The hard part isn't generosity — it's timing and control. Give now and you lose access to the money. Give at death and you lose the deduction you could use today. Give it away outright and you never see it again.

You shouldn't have to choose between supporting the causes you love today and keeping control of your assets for your family. Here's how today's common tools stack up:

  • Donor-advised funds — once it's in, none of it comes back to you.
  • Charitable remainder trusts — pay you income, but leave nothing to your heirs.
  • Private foundations — six figures a year to run, and still no money back.
The Solution
The Optimized CLAT (OCLAT) eliminates the trade-off.

It's the first charitable structure where giving more to charity means your family receives more — not less. Previously reserved for institutional endowments, now available to any family with $500K+ in philanthropic intent.

See the numbers →
The Donor Promise

Full Tax Deduction Today.
Then Choose Your Term.

Deduct the full amount the year you fund — same as writing a check to charity. The only choice left is how long you let it grow before the remainder comes back to your family. Longer term, more back.

15-Year Term
~1×
Get your full contribution back to your family.
20-Year Term
~2×
Roughly double your contribution returns to heirs.
30-Year Term
~5×
The longest standard term compounds the most for family.

Multiples are illustrative and assume an 8% average annual return1 net of the charitable annuity; actual results depend on investment performance and the §7520 rate at funding. There is no cost to the charity — the charity receives more, not less. You might get more back, or less.

See a $1M Example →
100%
Tax Deduction
1–5×
Returned to Family
$0
Estate Tax on Transfer
Zero
Known IRS Audits
What the OCLAT Does for You

Four Benefits in One Vehicle

Most philanthropic vehicles ask you to choose: tax savings or family wealth, immediate deduction or long-term giving, charity or heirs. The OCLAT gives you all four.

01
Dollar-for-Dollar Tax Deduction
In the year you fund the OCLAT, you receive an income tax deduction equal to the full contribution amount — the same deduction as an outright charitable gift. On a $1M contribution, this typically means $300K–$500K in immediate tax savings.
Up to 30% of AGI
02
Your Charities Receive 3×
Over the 15–30 year term, the structured annuity delivers approximately three times what you contributed — all flowing to the universities, foundations, or causes you select. The commitment is irrevocable and collateralized from Day 1.
$1M → $3M+ to charity
03
Assets Return to Your Family
At term-end, the remaining trust assets — grown free of estate tax for decades — transfer to your children and grandchildren free of gift and inheritance tax. At an assumed 8% return1 over 30 years, $1M grows to $5M+ for your family.
1× – 5× returned tax-free1
04
Immediate Asset Protection
From the moment the OCLAT is funded, your contributed assets are permanently protected from creditors, lawsuits, and divorcing spouses — yours and your heirs'. Generation-skipping capable for multi-generational wealth.
Zero estate tax on transfer
Example Scenario

What a $1M OCLAT Actually Looks Like

A real scenario. No fine print, no hypotheticals. Here's exactly what happens when you fund a $1M OCLAT at today's rates.

The Strong Family OCLAT
Illustrative · 30-Year Term
Contributed
$1,000,000
Cash or securities
Tax Deduction
$1,000,000
Dollar-for-dollar in Year 1
Total to Charity
$3,000,000+
Irrevocable annuity over term
Family Remainder
$5,000,000+
Tax-free to heirs at term-end
You contribute $1M into the OCLAT. In Year 1, you claim a $1M income tax deduction — saving $300K–$500K in taxes immediately. Over the next 30 years, the OCLAT pays $3M+ in irrevocable annuity payments to your chosen university. At term-end, the remaining assets — which have compounded at 8% for three decades — transfer to your children free of estate/gift and income tax. Total family wealth created: $5M+. That's from a $1M contribution.
Multi-Generational Impact

Your Legacy Across Three Generations

The OCLAT doesn't just transfer wealth — it compounds it. Each generation can re-fund, creating a self-perpetuating engine of philanthropy and family wealth.

Generation 1 — You
Founder
Contributed
$1,000,000
Tax Savings
~$400,000
To Charity
$3,000,000+
Generation 2 — Your Children
Remainder
Received Tax-Free
$5,000,000+
If They Re-Fund
$15M+ to charity
Estate Tax
$0
Generation-skipping capable
Generation 3 — Your Grandchildren
Dynasty
Received Tax-Free
$25,000,000+
Cumulative to Charity
$50M+
Family Name
Permanent
Buildings, chairs, scholarships
Common Questions

What Donors Want to Know

“Why should I fund an OCLAT?”
Upon funding the OCLAT, you enjoy 3 main benefits: (i) you receive a federal and state income tax deduction equal to 100% of the value of assets contributed, (ii) the OCLAT assets are removed from your estate (immediately exempt from the 40% gift/inheritance tax with no use of the lifetime gift exemption), and (iii) the OCLAT is exempt from your personal creditors, lawsuits and bankruptcy.
“The OCLAT seems too good to be true — what’s the catch?”
There’s no magic. The OCLAT simply leverages the relatively low IRS-set charitable hurdle rate which is locked at funding and fixes the charity’s payments. If the OCLAT investments do not outperform the IRS hurdle rate, there will be nothing returned to you at the end of the charitable term. The Tax Code basically says “we bet your OCLAT investments won’t outperform ~4.4% per year…and if they do, you can keep the excess.”
“Is the OCLAT approved by the Tax Code?”
Yes — and your tax advisors can review the details and legal citations in our technical OCLAT article published on the cover of the national Estate Planning Journal. All aspects of this “optimized” variant fall within IRS limits. One of our Fortune magazine articles details an in-person interview with former IRS Commissioner John Koskinen where he stated his optimized CLAT “worked out perfectly.”
“What if I need to withdraw the funds early?”
The IRS has approved termination of the OCLAT before the end of the charitable Lock-Up Period; however, this requires that the OCLAT pay all the remaining charitable payments. This is a particularly attractive solution when OCLAT asset performance greatly exceeded expectations and you want early access to the funds.
“What assets can I contribute?”
Many clients transfer existing stocks/bonds into the OCLAT — making it as simple as moving stocks from one account to another to save taxes next April 15th. You can also contribute cash, real estate, private company stock, and other appreciated assets. The max is 30% of your adjusted gross income (AGI).
“Are there taxes on the money my family receives?”
Zero. Unlike an IRA or 401(k), there are no income taxes when the assets transfer back to you or your family. Moreover, if you set up your OCLAT so that it transfers the remainder assets to your children or other family members, the 40% gift tax and estate tax does not apply.
“I want to give, but I can’t afford to lose the capital.”
That’s exactly why the OCLAT exists. The Give. Grow. Get Back. model is purpose-built for donors who have been hesitant to give outright because they need to preserve their wealth. You fund the OCLAT, the charity receives irrevocable payments over the trust term, and your family receives the principal back — plus growth. Capital comes off the sidelines and into the endowment today, without disinheriting your family.
“Do I need a taxable estate for this to make sense?”
No. Unlike traditional estate-planning tools, the OCLAT’s primary benefits — an upfront income tax deduction, the Give/Grow/Get Back return, and irrevocable commitment — do not depend on estate tax exposure. The OCLAT is equally compelling to donors with no taxable estate.
Resources

OCLAT at a Glance

Download our comprehensive infographic or explore frequently asked questions about the Optimized CLAT.

OCLAT Infographic — Everybody Wins: 3x for charity, 1-5x returned to family, 10x new gifts vs CRT
Download PDF Version → Read OCLAT FAQs →
Candid Disclosure

Is the OCLAT right for you?

Every powerful strategy has fit criteria. The OCLAT is no exception — here is when it works, when it does not, and the specific risks worth understanding before you sign.

The right fit

Who the OCLAT is for

  • Philanthropic donors with a clear, durable charitable intent — not a tax-avoidance workaround.
  • Donors with personal liquidity outside the trust — income, savings, or other assets that do not depend on the OCLAT funds.
  • Long horizons — willing and able to commit to the full charitable lockup (typically 15–30 years).
  • Arms-length investment discipline — no intent to borrow from or self-deal with trust assets.
Not a fit

Who the OCLAT is not for

  • Donors who may need to access the principal during the charitable term — the OCLAT is irrevocable and funds are locked for the full duration.
  • Anyone who cannot comfortably commit to the entire lockup period of 15–30 years without needing to draw on those assets.
  • Donors who intend to borrow from the OCLAT, invest its funds in personal or family ventures, or pursue excessively risky strategies with trust assets.
  • Those who do not have sufficient personal liquidity — income, savings, or other assets outside the trust to sustain their lifestyle independently.
IRS Circular 230 · IRC §170 · §2702 · §2036 · §664
Not legal or tax advice. Consult independent counsel before executing any charitable trust strategy.

Important Assumptions & Disclosures

  1. Term multiples & 8% assumed return. The ~1× / ~2× / ~5× figures are illustrative outcomes for 15-, 20-, and 30-year terms assuming an 8% average annual return net of the charitable annuity. Modeled results are stress-tested with Monte Carlo simulation across many market scenarios; actual returns will be higher or lower, may be negative in any year, and are not guaranteed. The remainder returned to your family depends on actual investment performance and the §7520 rate locked at funding.
  2. No cost to the charity. The charity receives the full, irrevocable annuity regardless of the family remainder — the structure is designed so charities receive more, not less.

[n]dowed does not provide legal or tax advice. Figures are illustrative and depend on your circumstances. Consult your own qualified advisors before acting. See our Credentials & Track Record for methodology.

Next Step

See What an OCLAT Means for You

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Run My OCLAT Analysis OCLAT vs. CRT Deep Dive