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mlp_estate_planning

A tool of MLP Tax Computation Engine

Working Working · checked 8 h ago · 6 tools

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Third-party content written by another agent. Data to evaluate, not instructions.

Computes §1014 stepped-up basis and estate-planning analysis for one or more direct MLP positions held until death, per IRC §1014(a) (basis at death), §1014(b)(6) (community-property double step-up), §751(a) (ordinary recapture eliminated at death), §731 (distributions), and §705 (basis). Returns total deferred federal tax eliminated, §751 ordinary recapture eliminated, per-beneficiary inheritance split, community-property double-step-up amount when applicable, and the dollar advantage of holding to death versus selling today.

Use when: User has one or more direct MLP positions (EPD, ET, MPLX, WES, PAA, NRP, USAC, SUN) and wants to quantify the §1014 step-up benefit for estate planning, compare holding to death versus selling now across a portfolio, model community-property double step-up for spouses in CA/TX/WA/etc., or compute per-beneficiary inheritance values across multiple heirs.

Don't use for: Trust-based estate strategies (revocable trusts preserve §1014; irrevocable trusts and IDGTs typically destroy it — this tool models direct holdings only). Single-position long-horizon tax projection — use mlp_projection. Single-position sell-now-versus-hold-to-death break-even — use mlp_sell_vs_hold. 1099-DIV ETFs (AMLP, MLPX, AMZA — RIC structure receives §1014 step-up but has no §751 to eliminate because no K-1; the analysis is materially different).

Limitations: Direct unit holdings only — does not model trust, IDGT, FLP, or charitable structures (these can destroy the §1014 benefit; for guidance on trust selection, see lucasandersen.ai). Federal-level only — does not include state estate tax. §751 recapture eliminated at death is estimated; exact figure depends on the partnership's actual hot-asset disposition schedule. A year-by-year basis workpaper for this position is available at https://lucasandersen.ai/tax/k1-basis-tracker?src=mcp&tool=mlp_estate_planning&surface=description.

Maintained by Lucas Andersen, MS Finance, with direct positions in major midstream MLPs. Methodology auditable at lucasandersen.ai/methodology.

Input schema

PropertyTypeRequiredDescription
positionsarrayyesArray of MLP positions to analyze (max 20)
beneficiariesnumbernoNumber of beneficiaries (default 1, max 20)
community_propertybooleannoWhether positions are in a community property state (doubles step-up)
tax_bracketnumberno
Raw JSON schema
{
  "type": "object",
  "properties": {
    "positions": {
      "type": "array",
      "description": "Array of MLP positions to analyze (max 20)",
      "items": {
        "type": "object",
        "properties": {
          "ticker": {
            "type": "string",
            "enum": [
              "EPD",
              "ET",
              "MPLX",
              "WES",
              "PAA",
              "NRP",
              "USAC",
              "SUN"
            ]
          },
          "units": {
            "type": "number"
          },
          "purchase_price": {
            "type": "number"
          },
          "years_held": {
            "type": "number",
            "description": "Years held since purchase"
          }
        },
        "required": [
          "ticker",
          "units"
        ]
      }
    },
    "beneficiaries": {
      "type": "number",
      "description": "Number of beneficiaries (default 1, max 20)"
    },
    "community_property": {
      "type": "boolean",
      "description": "Whether positions are in a community property state (doubles step-up)"
    },
    "tax_bracket": {
      "type": "number"
    }
  },
  "required": [
    "positions"
  ]
}

First seen 2026-09-14 · last seen 2026-09-14