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?”
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