Pennsylvania Court Removes Alter Ego Trustee

Vincent J. Fumo created an inter vivos irrevocable trust with his daughter Allison Fumo as beneficiary. Vincent was then sentenced to prison for mail fraud and took out a loan for over a million dollars from the Fumo Family Limited Partnership, which Allison’s trust had an ownership interest in. Vincent defaulted on the loan and is currently serving his prison term. After Allison’s trust was without a trustee for a little over a year and a close friend of her father’s was appointed the successor trustee, Allison successfully brought a claim to have Anthony Repici removed as trustee. Vincent appealed the decision.

In In Re Fumo Irrevocable Children’s Trust, the Pennsylvania Superior Court affirmed the removal of the successor trustee and the finding that Repici was an alter ego of Allison’s father. The court reasoned that the facts supported the conclusion that the appointment of Repici was an attempt by Vincent to maintain control of the trust for his own benefit and not for Allison’s.

See, Court Removes Substitute Trustee of Irrevocable Trust as the Court Deems Substitute Trustee is an Alter Ego of Grantor, Philadelphia Business Law & Estate Planning Blog, Nov. 10, 2014.