The recent article, called 'Estate of Siege', made allegations regarding La Toya's actions in the aftermath of Michael's sudden death in July 2009 - a report that she strenuously denies.
La Toya has now served a cease and desist letter against the publication, accusing the article of being "replete with misstatements of fact, false innuendos, and defamatory insinuations", according to TMZ.
The letter states that the feature made false claims about La Toya taking cash from Michael's mansion following his death and described her actions as a "mad scramble for money". It also suggested that her boyfriend took a removal van away from the property.
La Toya is said to be threatening to sue if Vanity Fair does not retract the article.
Earlier this year, the Jackson family were embroiled in a feud over allegations Michael's will was faked.
> Michael Jackson kids visit father's childhood home for his birthday
> La Toya Jackson for OWN reality series
> La Toya Jackson 'wants an end to Jackson family in-fighting'