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What is a "Coogan" account?
Answer by John Burnett, BOL Guru
Guru BIOS
Question: Can you tell me what a "Coogan" account is and how they're suppose to be set up?
Answer: "Coogan" accounts are trust accounts required by the states of California and New York as a condition of issuance of work permits for minors who wish to work in the entertainment business. They are named for Jackie Coogan, who was a child star of the 20th century whose earnings were squandered.
As I understand it, 15% of any minor's income "from the business" must be set aside in one of these accounts via direct payment from the employer. A parent or guardian will be the trustee of such an account, but withdrawals are not permitted (except transfers to another Coogan account). The trustee must turn the funds over to the kid at age 18, and the kid cannot touch the money until then.
A copy of the 2004 revision to the Coogan Account law in California (SB210) can be located at http://www.leginfo.ca.gov/pub/bill/sen/sb_0201-0250/sb_210_bill_20031003_chaptered.html
First published on BankersOnline.com 1/31/05
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