Donald Trump’s older sister has retired as a judge, prematurely ending an investigation into whether she broke judicial rules by allegedly taking part in tax fraud schemes with the president.

Maryanne Trump Barry, an 82-year-old federal appeals court judge, filed her retirement papers in February, 10 days after a court official notified four complainants in the case the probe was “receiving the full attention” of a judicial conduct council.

The complaints made last October stemmed from an investigation by the New York Times that uncovered details of an alleged scheme committed by Mr Trump and his siblings to fraudulently avoid tax over the course of several decades.

The potentially criminal behaviour saw the Trumps reportedly avoid gift and inheritance taxes on money passed to them from the real estate empire of their father, Fred Trump.

They allegedly did this by setting up a shell company, of which Judge Barry was a co-owner, which siphoned cash from their father's business by marking up purchases already made by his employees.

Judge Barry, who lives in Manhattan, decided to stop hearing cases shortly after her brother’s inauguration in 2017, and until February was listed as an inactive senior judge. She never publicly revealed the reason behind her decision.

Her status as an inactive judge meant she kept her salary and was still subject to conduct enquiries, but in announcing her retirement later than month, it forced an end to the probe.

The individuals who filed the complaints were told the case had been dropped without reaching any conclusions, according to the Times.

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Scott Shuchart, a lawyer who previously worked for the Obama administration, said he filed one of the complaints against Judge Barry as a concerned member of the legal profession.

He told the newspaper it was “galling” she could escape a misconduct probe while continuing to receive a state pension, which is likely close to $200,000 a year.

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The White House last year dismissed claims about the Trump’s alleged tax fraud as “misleading”, although tax authorities in New York City were ordered to launch an investigation into the allegations.

Mr Trump called the claims “very old” and “boring”.