It's passed on by ancestors around university? That's true! (7)
I believe the answer is:
genuine
'true' is the definition.
(I know that true can be written as genuine)
'it's passed on by ancestors around university? that's' is the wordplay.
'it's passed on by ancestors' becomes 'gene' (I've seen this in another clue).
'around' is an insertion indicator.
'university?' becomes 'u' (abbreviation for university).
'that's' becomes 'in' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'u'+'in'='uin'
'gene' enclosing 'uin' is 'GENUINE'.
Can you help me to learn more?
(Other definitions for genuine that I've seen before include "Real, not faked" , "Real; sincere" , "Bona fide, authentic" , "Sincere, honest" , "Sincere; authentic" .)