Investigators say 53-year-old Mark Piccolo admitted taking the money starting in 2009. He allegedly told a bank fraud investigator the family was living on the money.
Court records show the trust was created following a lawsuit involving a hospital and an obstetrics practice. That settlement is under seal.
A co-trustee became suspicious in October after discovering an invoice apparently from a Texas medical practice that was dated on a Sunday. The co-trustee contact the bank holding the trust after learning the Piccolos had never been billed for any services there.
Mark Piccolo, of Coraopolis, is jailed on $20,000 bail on charges of forgery and theft by deception. Court records don't list an attorney for him.