![[n]dowed](/public/brand/logo-dark-bg.png){kind=logo}
Five Steps to Legacy
How the OCLAT Works
From intent to irrevocable legacy in five steps. The entire process is handled by Jonathon Morrison in just two calls over two weeks. Click any step to see the details.
Step 01 — Initiate
Fund the OCLAT
Transfer assets — cash, securities, or private equity — into the irrevocable trust. The IRS §7520 rate is locked at funding, maximizing your charitable deduction.
§7520 Rate Locked at Funding
Accepted AssetsCash, stocks, PE interests
Minimum Contribution$100,000
Setup ProcessTwo calls over two weeks
Trust TypeIrrevocable — immediate protection
1
2
Step 02 — Immediate Benefit
Claim the Deduction
You receive a dollar-for-dollar income tax deduction in the year of funding — up to 30% of AGI, with a five-year carryforward for any excess.
$1M Contribution = $1M Deduction
Deduction Amount100% of contribution
AGI Limit30% (5-year carryforward)
Tax Savings at 37%$370,000 on $1M
TimingSame tax year as funding
Step 03 — Compound
Assets Compound in Tax-Advantaged Trust
The OCLAT's back-loaded structure keeps charitable payments minimal in early years, allowing the principal to compound for decades before annuity payments accelerate.
$1M → $10M+ at 8% over 30 years
Growth EnvironmentTax-advantaged compounding
Annuity StructureBack-loaded (20% annual step-up)
Early Year PaymentsMinimal — growth is preserved
IRS AuthorityRev. Proc. 2007-45
3
4
Step 04 — Give
Charities Receive Annuity
Over the 15–30 year term, irrevocable annuity payments flow to your selected charities — universities, foundations, or donor-advised funds you control.
$1M → $3.2M+ to Charity
Payment TypeIrrevocable annuity
RecipientsUniversities, DAFs, foundations
NGC Credit (CASE 2024)Same as outright cash gift — full PV booked in year one
Multiplier3.2× your original gift
Step 05 — Legacy
Family Receives Remainder
At term end, the grown remainder passes to your heirs — or a dynasty trust — free of gift and estate taxes. Your generosity, witnessed in your lifetime.
$6.8M+ Tax-Free to Family
Transfer VehicleDirect or dynasty trust
Estate Tax$0 — fully exempt
Gift Tax$0 — zeroed-out CLAT
Creditor ProtectionPermanent — from day one
5