Can a Bank Deduct Fees from a Coogan Blocked Trust Account?

Don't Let Bank Fees Deplete Your Child's Coogan Account, Image via Wikipedia

Understanding exactly what a Coogan blocked trust account is and how it works is no easy feat for a parent of a child actor or model. Many employees at banks are just about as clueless about Coogan accounts as you probably are, and some are even more so.

In fact, finding the information you need related to Coogan blocked trust accounts can be next to impossible. Some additional information about Coogan accounts can be found in “What Is a Coogan Account?” and “What Is a Coogan Blocked Trust Account?”

Not long after we opened my daughter’s Coogan blocked trust account, the financial institution hosting it was taken over by another financial institution. They assured me that the transfer of her account would be handled seamlessly.

Trustee’s Statement

I had to have a new trustee’s letter/statement of account (see “What Is a Coogan Account?” for details on the Trustee’s Letter/Statement) prepared to show all the new information for her Coogan account. The representative wanted to charge me $5.00 since they had previously prepared a statement for me. I asked to speak to the supervisor and got the $5.00 charge waived since it was not my fault. So at this point, I would definitely not have called it seamless, even though everything seemed to be going okay.

Fees Being Deducted From a Coogan Account

When I received my daughter’s first quarterly statement after her Coogan account had been inherited by the new bank, I noticed that fees were being deducted from her account. I certainly was not happy about the changes to her account that was supposed to remain the same after the transfer.

I proceeded to make phone calls to investigate what was going on with her account at this point. Why were fees being withheld from her Coogan account? After talking to three different bank representatives and spending over an hour on the phone, one of the representatives assured me that it was just set up incorrectly and that it would be fixed immediately.

But when her next statement came, I noticed fees were still being deducted each month from her account! I thought the idea of the account being a blocked trust was that no money, fees included, would be deducted from her account. It took another hour of phone calls and finally a visit to the bank to get this problem fixed.

So, “Can a Bank Deduct Fees from a Coogan Blocked Trust Account?”

Well, in answer to this question, a bank should not be deducting fees from a Coogan account! It may not be against the law (and indeed, I am in the process of investigating this right now), but it is certainly something that should not be occurring. No one should deduct money from the Coogan blocked trust account, not even the bank, until the minor turns 18 or becomes emancipated.

What is the point of the Coogan Law requiring 15% to be put into an account for the minor’s use if the bank is just going to charge fees and use that money? Even banking fees can use up the money in a small Coogan account quite rapidly.

Talk to the Bank or Credit Union If Fees Are Deducted Unexpectedly

If the bank or credit union is deducting fees from your child’s Coogan account, you must talk to the bank about it immediately. If they will not refund the fees and/or stop charging fees on the account, you need to transfer the money to a different bank or credit union that will not charge fees.

If a bank or credit union will charge fees if no deposits are made for a certain time period, find out exactly how often a deposit must be made. Then make a very small deposit into the account for the purpose of avoiding any fees if that will solve the problem.

Since California law requires that you open a Coogan trust account for your child when you get them a work permit, it just seems wrong that the banks can then deduct fees from the very accounts created to protect the earnings of the minor child.

For information on this and many other related topics, please subscribe to Your Young Actor’s Newsletter.

To your success,

Debbie Sikkema

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Tags: Bank, blocked trust account, child actor, Coogan Account, Coogan blocked trust, Coogan blocked trust account, coogan trust account, Credit Union, Financial institution

Become a Child Actor, Child Acting, Coogan Account, Los Angeles Acting | Debbie Sikkema | February 18, 2010 6:05 pm

7 Comments

By jinnie from mobile banking credit union, March 14, 2010 @ 11:04 pm

The Bank now days is as important as the banker. When WAMU was bought out by Chase and they start playing the old switch-a-roo without notification of changes. Your good old banker could do nothing for you.
By nimmy from mobile banking credit union, March 16, 2010 @ 9:14 pm

You provided me very good info and I must say that you really got the stuffs that are very interesting and one has to closely observe this.
By sanarita from mobile banking credit union, March 19, 2010 @ 1:05 pm

This is really a great post about the particular topic and i am really impressed to know about it. I have read your full article and truly speaking that it was really very knowledgeable and very interesting. I think you are really very close on your points. Anyways keep it up and keep continue with your valuable thoughts. In the near upcoming future.
By fraud, March 19, 2010 @ 1:10 pm

Its nice that Washington finally put some restrictions on the banks. Only time will tell where banks raise prices to make up for the huge losses.
By Anderson, April 2, 2010 @ 12:53 pm

Debbie,
I understand all these details you have mentioned in both your blogs. I have a question, when you get a paycheck where do we have to see this 15% mentioned? Under After tax deduction or under my net pay?
By Forex Robots, April 12, 2010 @ 12:10 am

sometimes I start thinking that banks are just trying to ruin the economy of our country. but i can`t understand what final aim do they want to achieve
By MarkSpizer, May 2, 2010 @ 3:30 am

great post as usual!