To understand virtually all planning techniques, the planner needs to understand the four basic parts of almost every asset that can be appropriately divided in the planning process. These components are:
Control Often the most important element to the client is the ability to control the asset. For example, a general partner owning only a 2% interest in a family limited partnership may still control its operations, but may not have a significant portion of the allocated income, current equity, or future appreciation generated by the LP’s assets.
Income The donor often wants to retain the right to receive income and other present benefits from the asset. For example, the recipient of a charitable remainder annuity trust has a right to income, but may not share in the current equity, or future appreciation.