Introduction to Coogan Accounts
A Coogan Account, also known as a blocked trust account, is a type of savings account designed to protect the earnings of child actors and performers in the entertainment industry. The account is named after Jackie Coogan, a child actor who sued his parents for mismanaging his earnings.
The Coogan Law, enacted in 2000, requires that a percentage of a minor's earnings be set aside in a trust fund, which can only be accessed when the child turns 18 or becomes emancipated. This law aims to prevent parents or guardians from misusing their child's earnings.
Who Needs a Coogan Account
Any child under the age of 18 who works in the entertainment industry in California is required to have a Coogan Account. This includes actors, musicians, models, and other performers who earn income from their work in film, television, theater, or other entertainment venues.
Parents or guardians of child performers must establish a Coogan Account within seven days of their child's first employment in the entertainment industry. The account must be opened at a bank or financial institution that is authorized to offer Coogan Accounts.
How Coogan Accounts Work
A Coogan Account is a type of trust fund that holds a percentage of a child's earnings, typically 15%. The funds are deposited into the account and cannot be withdrawn until the child turns 18 or becomes emancipated.
The account is managed by a trustee, usually a parent or guardian, who is responsible for ensuring that the funds are used for the child's benefit. The trustee must also file annual reports with the court to account for the funds in the Coogan Account.
Benefits of Coogan Accounts
Coogan Accounts provide a safe and secure way to protect a child's earnings from being misused by parents or guardians. The accounts also help to ensure that child performers have a financial safety net for their future.
Additionally, Coogan Accounts can help to reduce the financial burden on child performers and their families. By setting aside a portion of their earnings, child performers can save for their education, healthcare, and other expenses.
Establishing a Coogan Account
To establish a Coogan Account, parents or guardians must provide documentation, such as the child's birth certificate and social security number, to a bank or financial institution that offers Coogan Accounts.
The account must be opened within seven days of the child's first employment in the entertainment industry, and the funds must be deposited into the account within 15 days of the child's earnings being paid.
Frequently Asked Questions
What is the purpose of a Coogan Account?
A Coogan Account is designed to protect the earnings of child actors and performers in the entertainment industry by setting aside a percentage of their income in a trust fund.
Who is required to have a Coogan Account?
Any child under the age of 18 who works in the entertainment industry in California is required to have a Coogan Account.
How much of a child's earnings are deposited into a Coogan Account?
Typically, 15% of a child's earnings are deposited into a Coogan Account.
Can a Coogan Account be used for any purpose?
No, the funds in a Coogan Account can only be used for the child's benefit, such as education or healthcare expenses.
Who manages a Coogan Account?
A trustee, usually a parent or guardian, manages the Coogan Account and is responsible for ensuring that the funds are used for the child's benefit.
When can a child access the funds in their Coogan Account?
A child can access the funds in their Coogan Account when they turn 18 or become emancipated.