Saving For Your Child's Future
Many people may not realize it, but Jackie Coogan, the child-actor behind the term "Coogan Account," was known in his later years as Uncle Fester from The Addam's Family. You may also be unaware of Jackie Coogan's story. In 1938 at the age of 24, child star Jackie Coogan learned that his mother and step-father had spent most of the fortune he earned while working as a minor in film. Public uproar over this situation
caused California to pass "The Coogan Act" in 1938. Today, more states (such as NY and NM) are jumping on the band wagon and requiring that a percentage of a child actor's earnings be deposited into a blocked trust account. Children In Film continues to update each state's law page to reflect such information and changes made to the laws. When opening a blocked trust account, parents have many options: - Your Bank - many banks offer the ability to create a blocked trust account for your working minor. Note, however, that if you refer to it as a "Coogan Account," even in the state of CA, they may be unaware of what you are referring to. Additionally, some banks may charge you a fee to hold the account.
- Credit Unions - Credit Unions are another good option. First Entertainment Credit Union - available to California residents - currently offers and incredible 7% APY interest on the first $500.00 deposited to your Coogan Account!!! AFTRA- SAG Federal Credit Union also offers Coogan Accounts and membership is available nationwide. Qualified Enhanced Members of CIF receive automatic entry into the AFTRA-SAG FCU.
- Brokerage Accounts/ Financial Advisors - finally, some states allow funds to be deposited with a brokerage firm. You might consider contacting your family financial advisor for advice on blocked trust accounts or search our membership directory for a list of financial advisors.
"When a minor reaches 18," explained Roy MacKinnon of First Entertainment Credit Union, "they have full access to the funds and may use how they so choose. One excellent use would be for college education."
If your state does not require a trust account by law, or perhaps if you are looking for additional ways to save for your child's future, Roy MacKinnon of First Entertainment CU suggests that you might consider opening a 529s plan for college savings or a Coverdell ESA (Education Savings Account)
which is an IRA designed specifically
for financing higher education. But, keep in mind that both of these accounts
are parent funded as opposed to Coogan's which are mandated by law for child
performers.
If you have further questions about coogan accounts or finances for your child actor, our membership directory is filled with a list of banks and financial advisors who are ready and willing to assist.
To search our Member Directory
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