All About the Coogan
OVERVIEW
The Coogan Account , also known as a Blocked Trust Account , is a financial account set up for a child to receive 15 % of the minor ’ s gross wages , not to be released until that child comes of age . This law is enforced in California , New York , Lousiana , and New
Mexico . Your child will not be able to work in the entertainment industry without a valid Work Permit and proof of an established Coogan Account from a recognized financial institution .
HISTORY
The Coogan Law is named for Jackie Coogan , a famous child actor that was discovered in 1919 by Charlie Chaplin and cast in the famous film , The Kid ( 1921 ). Jackie may also be recognized fromhis roles as Oliver Twist ( 1922 ), Little Jackie Robinson ( 1924 ), Tom Sawyer ( 1930 ), and Uncle Fester from The Addams Family ( 1960 / 70s ). Jackie was a hugely successful child actor , but on his 21st birthday , he discovered that he had none of the money he had previously earned as a child film actor . Under California law at that time , the earnings of a minor belonged solely to the parents . Jackie sued his mother and former manager , but was only able to recover a small portion . As a result , the Coogan Law was put into effect in 1939 .
HOW IT WORKS
As of January 1st , 2000 , employers of child actors must deposit 15 % of a minor ’ s earnings into a Blocked Trust Account , that blocks access to the money from parents and / or guardians . This money is set aside prior to paying any taxes and agent / manager
WHERE TO GET ONE
Many banks do not offer Coogan Trust Accounts and sometimes , even the employees that work there , have never heard of them . This can certainly cause some confusion and frustration . Below is a partial list of banks that offer Coogan Trust Accounts : commissions . Since a minor cannot legally control their own money , California Law governs their earnings and creates a fiduciary relationship between the parent and child . The earnings are available once the child becomes 18 years of age .
• SAG-AFTRA Federal Credit Union
• Actors Federal Credit Union
• Bank of the West
• City National Bank
• First Entertainment Credit Union
• Union Bank of California
• Wells Fargo
For more information , visit the Labor Department ’ s website in each state .
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