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What Is a Coogan Blocked Trust Account?
For those with children interested in the entertainment industry, it is very important to understand what a Coogan Blocked Trust Account is.
As soon as you get a California entertainment work permit (see “Do You Need an Entertainment Work Permit for Your Child Actor?“) for your child, you also need to open a Coogan Account (see “What is a Coogan Account?” for more details) for that same child.
When I was trying to open a Coogan account for my daughter, I was confused and frustrated. I did not even know how to spell Coogan. All I knew was the name Coogan account. I did not really know what it was.
Many of the bank representatives I talked to had never even heard of a Coogan account. So I went and researched the topic so I had more information to use to communicate with the bank employees.
So, “What is a Coogan Blocked Trust Account?”
A Coogan Blocked Trust Account is also often called just a Coogan Account (a.k.a. a Coogan Trust Account, a Coogan Blocked Trust, or a Coogan Trust, or even just a Blocked Trust).
A Coogan Blocked Trust Account is a special savings account that all children in the entertainment industry in California and New York (and possibly other states — you’ll need to check with your state’s labor board for your state’s requirements) must have. When a child earns any money in the entertainment industry, 15% of their gross pay must be deposited into this Coogan account.
Even if you live in another state, if your child works in the state of California, he/she must have a work permit and open a Coogan blocked trust account in the state of California into which 15% of the child’s earnings can be deposited.
The Coogan Law or Coogan Act was passed after Jackie Coogan, one of the first child actors to make a lot of money, had all the money he earned spent by his parents. The legislation was passed to ensure that at least 15% of every child’s earnings in the entertainment industry is saved for the child’s use. By law, no money can be taken out of a Coogan blocked trust account until the minor for whom the account is opened turns 18 or is emancipated.
When talking to bank representatives about setting up a Coogan account, be sure to refer to it using the full name, a Coogan blocked trust account, as many representatives will be familiar with what a “blocked trust account” is but not with the term “Coogan Account.” Of course, if the bank does not know what the account is, you are better off going with another financial institution.
According to the documentation related to California entertainment work permits and Coogan blocked trust accounts, after a child gets a California work permit, it is also required that a Coogan account be opened for that child. There is even a statement on the work permit stating that, within 10 days of the permit being issued, a trustee’s statement showing evidence of the minor’s Coogan Trust account must be attached or the work permit will be void.
So, that said, it is advisable you open a Coogan trust account for your child within 10 days of getting your child’s first California entertainment work permit.
When you open the Coogan blocked trust account, have the bank representative prepare a statement at that time to provide evidence of the existence of the account. More on what should be included on this statement can be found in “What Is a Coogan Account?”
You need to give this statement to your talent representatives and attach it to your child’s current work permit. This information is then provided to employers so that they can make appropriate deposits into your child’s Coogan account. If the employer or your talent representative does not make the deposit to the Coogan account, it becomes the parents’ responsibility to deposit the correct amount into the child’s Coogan account.
For more information on this and many other topics related to children in showbiz, please subscribe to Your Young Actor’s Newseltter by entering your name and email address in the boxes to the right.
To your success,
Debbie Sikkema
27 comments
1 ping
Ken from Thermal Products says:
February 25, 2010 at 11:44 am (UTC -8)
15% is better then nothing, but I would think the percentage should be a little higher. But to be honest, I never knew such a bank account existed.
free share trading says:
March 1, 2010 at 11:23 pm (UTC -8)
pharmacy tech says:
March 6, 2010 at 12:51 am (UTC -8)
nice post. thanks.
sanarita from india actor says:
March 11, 2010 at 4:34 pm (UTC -8)
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Blossom from Glitter Gel Pens says:
March 14, 2010 at 3:49 pm (UTC -8)
Thanks for sharing this information. Are there certain banks who specialize in these types of accounts?
.-= Blossom@Glitter Gel Pens´s last blog ..Glitter Gel Pens =-.
Mike says:
March 21, 2010 at 2:57 am (UTC -8)
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March 21, 2010 at 10:31 am (UTC -8)
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March 30, 2010 at 4:13 am (UTC -8)
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April 1, 2010 at 5:48 am (UTC -8)
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Jess from Bam Bam Costumes says:
April 4, 2010 at 5:00 am (UTC -8)
This is such a useful post! My niece is trying to do some child acting and the info about the Coogan account here is going to save her many headaches! Thanks for sharing.
.-= Jess @ Bam Bam Costumes´s last blog ..Contact Us =-.
Free Beats says:
April 19, 2010 at 10:01 am (UTC -8)
but should people really want their young kids to be in the entertainment industry?! I mean some of the young stars can’t handle the fame, I think a lot of parents who try to push their kids into stardom are doing it for their own selfish intereste
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April 26, 2010 at 1:14 am (UTC -8)
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May 9, 2010 at 3:40 am (UTC -8)
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May 13, 2010 at 3:01 am (UTC -8)
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Joe from Wench Halloween Costume says:
June 29, 2010 at 9:01 am (UTC -8)
Great information. I can relate to the frustration you must have had quite well because there is nothing more annoying than trying to set up an account of some sort when you don’t know whats required…I had similar problems with my bank account setup recently…
.-= Joe @ Wench Halloween Costume´s last blog ..Privacy =-.
double chin says:
June 30, 2010 at 4:11 am (UTC -8)
yes i agree with the first poster it should be higher than 15%
Tamara from rockstar costume says:
July 30, 2010 at 2:13 am (UTC -8)
This is really an informative post. You give me an idea Coogan Blocked Trust Account. I feel sorry for that frustrating experience of yours.
.-= Tamara @ rockstar costume´s last blog ..About Us =-.
Andrew from wold costume says:
August 26, 2010 at 6:56 am (UTC -8)
A Coogan account is a special bank account set up to save aside a minimum of 15% of a child’s total earnings. At present, Coogan Accounts (a.k.a Blocked Trust Accounts and Trust Accounts) are required by the State of California, New York, Louisiana and New Mexico. In most instances, you will have to supply proof of a trust account prior to receiving a work permit. 15% of the minor’s gross wages are required to be withheld by the employer and deposited into the Coogan account within 15 days of employment. Coogan was young actor then, he eventually sued his mother and former manager for his earnings and there you go, the rest is a history.
Sam Lake from Flatten Your Stomach says:
September 20, 2010 at 10:54 pm (UTC -8)
Thanks for your information articles, it helps me to understand what is coogan account. As a mother now i know what Iam going to about my child future.
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September 24, 2010 at 5:00 am (UTC -8)
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Elizabeth Wilson from Building Self Confidence says:
September 28, 2010 at 11:45 pm (UTC -8)
I never heard this kind of account,but thank you for your informative article….Iam going to search this account.
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Dorothy Collins from Wooden Bed Frames says:
September 29, 2010 at 11:43 pm (UTC -8)
Never heard also this what they called Coogan Account but upon reading I think this is very helpful.
Sam from Lose Abdominal Fat says:
October 4, 2010 at 7:24 pm (UTC -8)
Some of the young stars can’t handle the fame, I think a lot of parents who try to push their kids into stardom are doing it for their own selfish interest.
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jake from instrumental beats says:
January 29, 2011 at 10:38 pm (UTC -8)
i feel like to much effort can be put on parents to fulfil the parents dreams.. mom and dad were failed actors so they try to relive their fantasy through their kids.
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April 15, 2011 at 12:35 pm (UTC -8)
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Can a Bank Deduct Fees from a Coogan Blocked Trust Account? | Your Young Actor says:
February 18, 2010 at 6:05 pm (UTC -8)
[...] In fact, finding the information you need related to Coogan blocked trust accounts can be next to impossible. For some additional information about Coogan accounts, refer to “What Is a Coogan Account?” and “What Is a Coogan Blocked Trust Account?” [...]