Jackie Coogan Wikipedia
Shortly after our arrival in L.A., I was told I needed to set up a Coogan account for my daughter.
I did not know what a Coogan account was, why I needed one for my daughter, how it would work, or what to look for when setting up this sort of account.
Since I knew so little about a Coogan account, when I called banks to inquire about it, I struggled to explain what I needed.
Our family was maintaining two households at that time, one in South Carolina and one in Burbank, and that was a big drain on our finances. So what was most important to me then was to minimize the up-front cost in setting up the account.
So, I asked only two questions. First, I asked:
- Do you have Coogan accounts?
And if the answer to that question was yes, I asked:
- How much money is required to open the account?
So I opened the account at the place requiring the smallest initial deposit, but was this the wisest choice? This was important, but there were other things I should have thought about as well.
If your child is just getting started in showbiz, you may be wondering, “What is a Coogan account?” and “Why do I need a Coogan account for my young actor or model?”
Continue reading for answers to these questions and other information related to setting up a Coogan account.
In order for your child to work in show business in the state of California (and in some other states, too), you must have a special bank account set up for your child into which the money that he or she earns can be deposited.
Why is this?
Well, many years ago, there was a very successful child actor named Jackie Coogan. He first worked in Vaudeville shows and in silent films, and then starred with Charlie Chaplin in the movie The Kid in 1921.
Many other film roles for Jackie Coogan followed after that one, and he earned a substantial amount of money. Unfortunately, his mother and stepfather squandered nearly all the money he earned.
Jackie Coogan filed a lawsuit to get money back from them, but he only ended up getting a small portion of his actual earnings.
It was this lawsuit that resulted in legislation in the state of California referred to as the California Child Actor’s Bill (a.k.a. the Coogan Bill and the Coogan law).
This law mandates that employers of a child actor or model deposit 15% of the money earned by that child into a special account called a Coogan blocked trust account (a.k.a. a Coogan trust fund, a Coogan trust account, or a Coogan account).
It is the responsibility of the parent or guardian of the child to set up this account for the child. So how do you set up a Coogan Trust Fund?
First, research financial institutions to find ones that have Coogan accounts. Find out how much the initial desposit has to be, and also be sure to check into what the interest rate will be. Since this money is going to be left there for many years, finding a good interest rate is also important.
In some banks, the account is a junior savings account that is blocked from withdrawals. This type of account typically has a very low interest rate. The SAG/AFTRA Credit Union often has the best rates and options for a Coogan account.
After choosing a financial institution, just take your child’s social security number and the money or a check for the initial deposit, and tell them to open a Coogan blocked trust account for your child with you as the trustee.
It is a good idea to ask them exactly what documentation you need to open the account. Typically, they require a certified birth certificate for the child and proof of your identity (driver’s license or passport).
After opening the account, make sure to get a letter from the financial institution. This letter should have:
- the name, full street address, and phone number of the financial institution branch where the account was opened,
- the date the account was opened,
- the type of the account specified as a blocked trust account,
- the routing number and account number, and
- the signature of the financial representative who set up the account.
Immediately make several copies of this letter, filing the original at home and giving one to each of your child’s talent representatives.
A California entertainment work permit is considered invalid 15 days after it is issued unless proof of existence of a Coogan account for the child is attached. So it is a good idea to file the work permit and Coogan Account information letter together.
When a child is employed in the entertainment industry, this information must be supplied to the employer so that the appropriate deposits can be made into the child’s Coogan blocked trust account.
Since this account is a blocked trust, money can be deposited into the account, but no money can be withdrawn from this account by any person for any reason. Only the child can withdraw money from this account on or after his/her 18th birthday or when legally emancipated.
Note that a Coogan trust account can be transferred from one financial institution to another. So if you find better interest rates and want to move the account, just follow the specified procedures for transferring the account.
For more tips on this and many other topics related to children in show business, please subscribe to Your Young Actor’s Newsletter.
To your child’s success,
Debbie Sikkema
29 comments
7 pings
Roy MacKinnon says:
March 24, 2009 at 7:07 am (UTC -8)
First Entertainment Credit Union also offers Coogan Accounts. They are the largest credit union serving employees of the entertainment industry and their Coogan can earn 7% APY on the first $500 in deposits when eStatements are used.
Hot holiday toys for your children says:
May 2, 2009 at 6:32 pm (UTC -8)
Thanks for the good work guys,i am glad to see finally what you have been working on all these months
kathy@Irvine Attorney says:
June 5, 2009 at 11:39 am (UTC -8)
Very informative.
Stevie from Solicitors Sussex says:
June 16, 2009 at 3:17 am (UTC -8)
It’s kind of sad this is neccessary and parents aren’t trusted. But then I suppose some can’t be so it probably is a neccessary law.
Debbie Sikkema says:
June 19, 2009 at 12:42 pm (UTC -8)
Yes, most parents are responsible about it, but it really is best to protect our kids this way!
Scott@Chicago Business Attorney says:
October 9, 2009 at 1:46 pm (UTC -8)
I think this is a great idea to protect children’s earnings. Too many parent’s in the past have wasted away money their children have worked very hard to earn.
trading system says:
January 15, 2010 at 9:09 am (UTC -8)
Coogan accounts are very interesting. Thanks for the information!
motocross suspension says:
January 22, 2010 at 8:53 am (UTC -8)
Very crazy that parents used to be able to spend their children’s money like that. I am glad that legislation made this a law. It is very much needed.
Mike says:
March 21, 2010 at 3:21 am (UTC -8)
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March 30, 2010 at 4:00 am (UTC -8)
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April 1, 2010 at 5:34 am (UTC -8)
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April 26, 2010 at 1:01 am (UTC -8)
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May 13, 2010 at 3:06 am (UTC -8)
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Todd Nelson says:
August 10, 2010 at 10:03 am (UTC -8)
Not all Coogan Accounts from different financial institutions are created equal and there are good reasons why AFTRA-SAG Federal Credit Union is considered the “Coogan Expert”:
- Open a Coogan Account in 1 day
- Statement of Trustee issued immediately
- No monthly service charges
- Images of Coogan deposits are provided to assist in tracking of minors’ earnings
- AFTRA-SAG Coogan funds earn competitive dividend rates
- You can transfer an existing Coogan Account from another institution to AFTRA-SAG
- Deposits at AFTRA-SAG are insured by the National Credit Union Share Insurance Fund (NCUSIF) to the maximum amount allowed by law
heather says:
August 22, 2010 at 7:43 pm (UTC -8)
excellent article! Both Aftra sag fcu and First Entertainment (as roy mentioned above) are excellent resources for prepping your child’s coogan account. Members of childreninfilm.com can connect directly with both Roy and the individuals as ASFCU – members of cif are automatically eligible for admission in to ASFCU and for a $5 flat rate they do everything for you and never charge monthly fees!
Fuller Law Online says:
November 4, 2010 at 12:05 pm (UTC -8)
Whoa, I actually didn’t know that. Too bad Coogan had to sue his parents.
Tom Detelich says:
December 27, 2010 at 7:53 am (UTC -8)
Wow – very interesting! Sadly, I’m not surprised to hear this unfortunate story about Coogan, but glad to hear that this account was started to protect other child actors!
Nathan says:
January 13, 2011 at 9:41 am (UTC -8)
Oh so that’s why it’s called coogan. Heard of the story before and seems that something good actually came from such a sad incident.
For future child actors, ask for a coogan accounts from your parents
JS says:
February 28, 2011 at 11:35 am (UTC -8)
I set up a Coogan Account in CA at the Bank of America for my son when he was about a year old (he’s now 4) and we then subsequently decided not to put him in the entertainment industry, so all that is in the account is $25 initial deposit we made (he never earned anything). I want to close the account b/c we are now after 3 years incurring fees but it’s unclear whether or not I’m allowed to close the account. What do I do with the $25 since it is in his account. I don’t want to keep it open. Is it legal for me to close the account? Thanks!
Kamil Wojtys@Car Stories says:
June 20, 2011 at 11:56 pm (UTC -8)
I was looking for information about Coogan account and found it . Thank you Debbie !
Debbie Sikkema says:
July 12, 2011 at 6:27 am (UTC -8)
Hi Teresa,
Thanks for posting. I did read your post and commented on it there. Glad you are having such great success! Good luck. –Debbie
mark says:
August 31, 2011 at 9:09 am (UTC -8)
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Teresa Roberts says:
March 14, 2013 at 10:48 am (UTC -8)
This was a life saver! I’ve been searching the net trying to find a bank to open one. All the banks around here give me funny looks when I ask about blocked trust account. I’m going to be living off savings on our trip to LA and wanted to already have an account open. I was afraid I’d get out there and have $500 dollar min requirement to open an account. I found the AFTRA-SAG FCU webside I can open an account from here and be ready to go when we go out there. $50 min is a RELIEF!!! Thanks for the help everyone. ( i’ll worry about interest later when she starts making money. Just want to get one open!)
Debbie Sikkema says:
April 10, 2013 at 11:32 am (UTC -8)
Hi Teresa,
So glad my site was a help to you and glad you got her Coogan account setup. I know exactly what you are saying!
To your success,
Debbie
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