What is a Coogan Account?
A "Coogan Trust Account" is a blocked trust account that is established at a
qualified financial institution in California that is insured at all times by either the
FDIC, SIPC or NCUSIF.
Under California law, whenever a minor renders artistic services, employers are
required to deposit 15% of gross earnings directly into the minor's "Coogan
(blocked trust) Account". The monies placed in trust cannot be touched by
anyone until the minor turns 18 or becomes legally emancipated.
Parents or Legal Guardians are required to establish a "Coogan Trust Account"
within seven business days after a minor's employment contract is signed, and to
provide the minor's employer with a copy of a trustee's statement (evidencing
proof of the account) within ten (10) business days after the start of employment.