A nonresident, an LLC, and the estate tax

A nonresident decedent owned a less-than-100% interest in an LLC. The LLC held Rhode Island real property. Should that interest be included in the Rhode Island gross estate for purposes of Rhode Island estate tax? 

Tax Administrator David M. Sullivan determined that the nonresident decedent's interest in the LLC is not subject to the Rhode Island estate tax, according to a recently posted declaratory ruling.

• But Sullivan said his answer would be different if the holder of the less-than-100% interest in the LLC were a Rhode Island resident.