Transfer a Coogan Account, Image via Wikipedia
It is important that the money in your child’s Coogan account earn at the best possible rate. It is also important that banks not deduct fees from your child’s Coogan account. If your child’s account is not growing, then it is time to transfer that account to another financial institution.
Fees Can Deplete Your Child’s Coogan Account
As the mother of a young actor in the L.A. area, I want to make sure my child’s money gets a decent rate of return and that it does not get depleted due to fees being charged on the account.
But I also know that is not always easy to get the information you need to make the best decisions regarding your child’s Coogan account.
I recently got an email from a parent who had a child in the entertainment industry whose Coogan account had been totally used up from fees and was actually showing a negative balance. She was struggling just trying to figure out how to close the account to keep it from incurring additional fees!
That was really upsetting to me. I was hoping I would find out that the bank could not charge fees that way, but that was not what I found out. Unfortunately, fees can be charged on Coogan Accounts.
You certainly don’t want that to happen to your child’s Coogan Blocked Trust Account. You want it to be growing and not shrinking!
For more information on Coogan Accounts (aka Coogan Blocked Trust Accounts, Coogan Blocked Trusts, and Coogan Trust Accounts), check out “What is a Coogan Account?“, “How Much Money Must Be Deposited into a Coogan Account from a Child’s Earnings?“, “Can a Bank Deduct Fees from a Coogan Blocked Trust Account?“, and ”What Is a Coogan Blocked Trust Account? (Showbiz Term of the Day).”
So, “How Do You Transfer a Coogan Account from One Financial Institution to Another?”
If your child’s Coogan account is currently earning a very small amount of interest and particularly if the account is incurring fees each month, you can and should transfer that money directly to another Coogan account at a different financial institution. Don’t wait until most of the money that was deposited in that account has been used up by fees before you look into transferring it.
It is completely legal to transfer your child’s Coogan account from one financial institution to another. In California, transferring the account is completely legal and is specified by California Family Code (Section 6753). It specifies that the funds can be transferred by the owner of the Coogan account to another financial institution, provided those funds are still held in trust.
So, how do you actually do the transfer of the Coogan Account? It is easy! Just follow the steps below.
- Do some research to find a financial institution that has Coogan Accounts that meet your requirements. Make sure that the return on investment will be good and that maintenance fees will not be charged (or that you can prevent the fees being charged by making a very small deposit every few months if you don’t mind doing that–sometimes you can get better rates in this type of account). Also, make sure the initial minimum deposit is not more than your child currently has or that you are willing to contribute.
- Obtain a Coogan Transfer Letter from the new financial institution. If they don’t have a letter, you can create your own using the Coogan Account Transfer Letter on the AFTRA-SAG Federal Credit Union site as an example. Completely fill it out with correct account numbers and other information required.
- Send or deliver the letter to the financial institution currently hosting your Coogan Account to let them know that you are requesting a transfer of your child’s Coogan Account. The new financial institution may send the completed and signed letter to the old financial institution for you.
- Monitor the status of the transfer to determine exactly when that transfer takes place. Once the Coogan Account Transfer Letter has been received, the financial institution should transfer the Coogan Account to the new financial institution within a few days. Stay in close contact with your new financial institution to make sure the transfer takes place smoothly and in a timely manner. Don’t just assume the transfer has occurred.
- Have the new financial institution create a statement at that time to provide evidence of the existence of the account and the necessary account information for deposits to be made into the account. Let them know exactly what to include on the statement. More on exactly what should be included on this statement can be found in “What Is a Coogan Account?”
- Give copies of the statement to your child’s talent representatives (talent agent/talent manager) and current employers, and keep a copy in your files. This is essential to make sure that your child’s earnings get deposited correctly after the transfer.
- Watch your child’s Coogan Account grow rather than shrink!
The AFTRA-SAG Federal Credit Union has excellent Coogan Accounts and Coogan Account Services. If you are looking for a financial institution to host a Coogan Account, this is certainly one of the best financial institutions for Coogan Accounts.
There are other banks and credit unions that have good Coogan Blocked Trust Account programs, so just spend a little time doing your research before you make a decision.
Once again, since it is hard to say exactly how long the transfer will take, it is up to you as the parent or guardian of the minor child to follow up until the transfer does actually occur.
For more on this topic and many others related to starting a career in the entertainment industry, subscribe to the Young Actors Newsletter using the form to the right.
To your success,
Debbie Sikkema
8 comments
Becky from atherton taxis says:
September 6, 2010 at 11:20 pm (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.Some financial institution need you need to show proof of employment before they will set up an account some do not. For those with principal or speaking roles contracts can be used to show proof of employment. For those with background roles you must first complete a day of work and use your voucher receipt as proof of employment.
Mary Fry says:
December 28, 2010 at 8:41 pm (UTC -8)
According to the actual text of the Coogan law “no withdrawal by the beneficiary or any other individual, individuals, entity, or entities may be made of funds on deposit in trust without written order of the superior court pursuant to paragraph (7) of subdivision (b) or paragraph (5) of subdivision (c) of Section 6752.” The bank is an “entity,” therefore not entitled to withdraw any money as fees or charges. Ironically, the banks offer FREE accounts to children with a minimum deposit of $25. Those types of accounts are not Coogan accounts and can be withdrawn at any time. Banks know Coogan accounts are easy targets. The children can’t move their money and parents only receive quarterly statements while fees are deducted monthly. Any bank that acts as a “predator” by charging a child’s Coogan account is in violation of federal law as it is currently written.
Max from free UK business listings says:
January 4, 2011 at 3:47 am (UTC -8)
“Coogan” accounts are trust accounts required by the states of California and New York as a condition of issuance of work permits for minors who wish to work in the entertainment business. They are named for Jackie Coogan, who was a child star of the 20th century whose earnings were squandered.
Jamie from locksmith south san francisco says:
January 15, 2011 at 3:33 am (UTC -8)
Not all financial institutes “do” Coogan Accounts. You need to search on the internet or call. If you ask them and they do not know what a Coogan Account is, then just call the next bank on your list.
Jan from Stainless Steel Microwaves says:
April 11, 2011 at 7:42 am (UTC -8)
Jamie,
I agree with you especially when you consider most people don’t even know who Jackie Coogan was.
Maybe looking in LA would give you more choices as they are the entertainment center of the world?
Jan@Stainless Steel Microwaves´s last [type] ..GE Stainless Steel Microwave
Ergolad says:
May 5, 2011 at 9:44 am (UTC -8)
+1 on AFTRA-SAG FED CU. Had my own Coogan account there. They are real advocates for their clientele. When I was a young actor just starting to handle my money from my child acting days, I foolishly transferred my money away from them and into a big brick and mortar bank. Later I was hit with tons of fees that I was not informed about. AFTRA-SAG FED CU helped me transition all my money back and really took great care of me. They don’t have all the bells and whistles of a larger bank, but if you just want a safe place to put your money that cares about their clients, then look no further!
Jules from Keyless Locks says:
August 2, 2011 at 11:23 am (UTC -8)
Jan,
So true, i had to do a Wikipedia search to see who Jackie Coogan was, then i remembered him from the Adams Family TV show.
accountant says:
October 29, 2011 at 3:13 am (UTC -8)
I do agree with all of the ideas you have introduced to your post. They’re very convincing and will definitely work. Nonetheless, the posts are too quick for newbies. May just you please prolong them a little from subsequent time? Thanks for the post.