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Give · Grow · Get Back
Give Generously.
Grow Your Family Wealth & Legacy.
The OCLAT is the only giving tool that gives you a full tax deduction today, funds the charities you choose for decades, and then returns your original gift — plus its growth — to your heirs. You give, it grows, you get it back.
What the OCLAT Does for You
Four Benefits in One Vehicle
Most giving tools make you choose: tax savings or family wealth, a deduction now or giving over time, charity or heirs. The OCLAT gives you all four.
01
Dollar-for-Dollar Tax Deduction
The year you fund the OCLAT, you get an income-tax deduction for the full amount you put in — the same as giving it straight to charity. On a $1M gift, that usually means $300K–$500K saved on taxes right away.
Up to 30% of AGI
02
Your Charities Receive 3×
Over the 15–30 year term, the fixed yearly payments add up to about three times what you put in — all going to the universities, foundations, or causes you choose. The commitment is locked in and backed by assets from Day 1.
$1M → $3M+ to charity
03
Assets Return to Your Family
When the term ends, what's left in the trust — having grown free of estate tax for decades — passes to your children and grandchildren free of gift and inheritance tax. Assuming an 8% return1 over 30 years, $1M grows to $5M+ for your family.
1× – 5× returned tax-free1
04
Immediate Asset Protection
From the moment you fund it, the money is permanently protected from creditors, lawsuits, and divorce — yours and your heirs'. It can also pass down across multiple generations.
Zero estate tax on transfer
The Donor Promise
Full Tax Deduction Today.
Then Choose Your Term.
Deduct the full amount the year you fund it — just like writing a check to charity. The only decision left is how long you let it grow before the rest comes back to your family. The longer the term, the more comes 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.
Common Questions
What Donors Want to Know
“Why should I fund an OCLAT?”
When you fund the OCLAT, you get three main benefits: (i) a federal and state income tax deduction equal to 100% of what you put in, (ii) those assets leave your estate — immediately free of the 40% gift/inheritance tax, without using up your lifetime gift exemption — and (iii) the assets are protected 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 takes advantage of a low IRS-set “hurdle rate” that locks in when you fund it and sets the charity’s payments. If the trust’s investments don’t beat that hurdle rate, there’s nothing left for you at the end of the term. In effect, the Tax Code says: “we bet your investments won’t beat about 4.4% a year…and if they do, you keep the extra.”
“Is the OCLAT approved by the Tax Code?”
Yes — and your tax advisors can check the details and legal citations in our in-depth OCLAT article, published on the cover of the national Estate Planning Journal. Every part of this “optimized” version stays within IRS rules. One of our Fortune articles covers an in-person interview with former IRS Commissioner John Koskinen, who said his optimized CLAT “worked out perfectly.”
“What if I need to withdraw the funds early?”
The IRS allows you to end the OCLAT before the charitable lock-up period is over — but only if the trust first pays out all of its remaining charitable payments. This works especially well when the investments have done much better than expected and you want access to the money early.
“What assets can I contribute?”
Many people simply move stocks or bonds they already own into the OCLAT — as easy as transferring stock from one account to another to cut next April’s tax bill. You can also contribute cash, real estate, private company stock, and other assets that have grown in value. The most you can deduct in a year is 30% of your adjusted gross income (AGI) — the income figure your taxes are based on.
“Are there taxes on the money my family receives?”
None. Unlike an IRA or 401(k), there are no income taxes when the money comes back to you or your family. And if you set up the OCLAT to pass what’s left to your children or other family, the 40% gift and estate tax doesn’t apply either.
“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 built for people who’ve held back from giving outright because they need to keep their wealth. You fund the OCLAT, the charity gets guaranteed payments over the term, and your family gets the original amount back — plus growth. Your money goes to work for charity today without cutting your family out.
“Do I need a taxable estate for this to make sense?”
No. Unlike most estate-planning tools, the OCLAT’s main benefits — an upfront income tax deduction, the Give/Grow/Get Back return, and a locked-in commitment — don’t depend on whether you owe estate tax. It works just as well for donors with no taxable estate.
Candid Disclosure
Is the OCLAT right for you?
Every powerful strategy is a fit for some people and not others. Here’s when the OCLAT works, when it doesn’t, and the risks worth understanding before you sign.
The right fit
Who the OCLAT is for
- Givers with a clear, lasting charitable intent — not people just looking for a tax loophole.
- People with enough money outside the trust — income, savings, or other assets — so they don’t need the OCLAT funds to live on.
- A long time frame — willing and able to commit for the full lock-up period (usually 15–30 years).
- A hands-off approach to the trust’s money — no plans to borrow from it or use it for personal deals.
Not a fit
Who the OCLAT is not for
- People who might need to get at the original money during the term — the OCLAT can’t be undone, and the funds are locked for the whole period.
- Anyone who can’t comfortably go the full 15–30 years without needing to tap those assets.
- People who plan to borrow from the OCLAT, put its money into personal or family ventures, or take big risks with the trust’s assets.
- People who don’t have enough money outside the trust — income, savings, or other assets — to support their lifestyle on their own.
Suggested Reading
From our Press
Legacy planning in practice: what one of history’s most iconic families teaches today’s donors about giving and generational wealth.
Fortune
December 2023
How a Former IRS Boss Optimized His Charitable Trust
Fortune covers a former IRS commissioner who used the OCLAT to support his alma mater Duke University while growing his assets and passing them on to his children tax-free — a case study in the strategy’s powerful real-world application at the highest level of wealth planning and philanthropy.
Fortune
Forbes
August 2022
Elevating Your Estate and Legacy: A Lesson from Jackie Kennedy
Forbes explores how modern estate strategies draw lessons from one of history’s most iconic legacies — and how a charitable lead trust can carry a family’s impact across generations.
Forbes
Clients, advisors & charities across leading institutions
Next Step
See What an OCLAT Means for You
Request a personalized model based on your assets, age, and charitable goals. No cost, no commitment — just the numbers.
Important Assumptions & Disclosures
- 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.
- 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.