What Is a Coogan Blocked Trust Account? (Showbiz Term of the Day)

Coogan Blocked Trust Account Image via Wikipedia

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