Coogan Account. What is it?
A Coogan account is a blocked trust account that protects a child's earnings until they are adults. It's required for child actors and athletes who work under contract.
History of the Coogan Law
The Coogan Law is named for the famous child actor Jackie Coogan. Coogan was discovered in 1919 by Charlie Chaplin and soon after cast in the comedian’s famous film, The Kid. Jackie-mania was in full force during the 1920s, spawning a wave of merchandise dedicated to his image. It wasn’t until his 21st birthday after the death of his father and the dwindling of his film career that Jackie realized he was left with none of the earnings he had worked so hard for as a child. Under California law at the time, the earnings of the minor belonged solely to the parent.
Coogan eventually sued his mother and former manager for his earnings. As a result, in 1939, the Coogan Law was put into effect, presumably to protect future young actors from finding themselves in the same terrible situation that Jackie Coogan was left in. Unfortunately, the 1939 incarnation of the Coogan Law was flawed, leaving open various loopholes and necessitating long-term, court-sanctioned contracts for validation.
The Current Coogan Law
After many years of advocating for more protections for child actors, the SAG-AFTRA Young Performers Committee, the National Policy and Planning Department, and other industry groups were successful in closing many of the loopholes that made the original Coogan Law ineffective. On January 1, 2000, changes in California law affirmed that earnings by minors in the entertainment industry are the property of the minor, not their parents. Since a minor cannot legally control their own money, California Law governs their earnings and creates a fiduciary relationship between the parent and the child. This change in California law also requires that 15% of all minors’ earnings must be set aside in a blocked trust account commonly known as a Coogan Account.
How it works
A parent or legal guardian opens the account in the child's name
The child's employer or agent deposits 15% of the child's earnings into the account
The child can't access the money until they turn 18 or become legally emancipated
Why it's important
It protects the child's earnings from being spent irresponsibly
It's a requirement for child actors to get a work permit
COOGAN TRUST ACCOUNTS
Not all banks offer Coogan Trust Accounts, and even some that do still have employees are not familiar with the term “Coogan Account”. Sometimes explaining that you are opening up a blocked trust account for your minor child will clear up confusion.
Below you will find a partial list of banks, credit unions and brokerage firms that offer Coogan/Trust Accounts. SAG-AFTRA provides this list for information purposes only and does not endorse any particular institution. These financial institutions each have different requirements for opening accounts. Some require a first paycheck to open the account, some a minimum deposit and the interest rates vary. It is important to compare financial institutions and find the best one for you and your child.
SAG-AFTRA Federal Credit Union
Actors Federal Credit Union
Bank of the West
City National Bank
First Entertainment Credit Union
Morgan Stanley/Smith Barney
Union Bank of California
Wells Fargo
