mlp_estate_planning
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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
| Property | Type | Required | Description |
|---|---|---|---|
| positions | array | yes | Array of MLP positions to analyze (max 20) |
| beneficiaries | number | no | Number of beneficiaries (default 1, max 20) |
| community_property | boolean | no | Whether positions are in a community property state (doubles step-up) |
| tax_bracket | number | no |
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"
]
}