A Coogan account is a blocked savings account that holds a portion of a child performer's earnings until they turn 18

When a child acts in film, television, or theatre, California law requires that a percentage of their gross earnings go into a Coogan account—a court-ordered savings account the child cannot touch until they reach the age of majority. The account is named after child actor Jackie Coogan, whose parents spent his entire $4 million fortune from silent films, leaving him with nothing when he turned 18. The law that created these accounts, passed in 1939, exists specifically to prevent that outcome.

The account works like this: a portion of the child's pay (typically 15 percent of gross earnings, though the exact amount varies by contract and court order) goes directly into a blocked account at a bank or financial institution. The child's parent or guardian cannot withdraw the money without a court order. The account earns interest, and when the child turns 18, the money becomes theirs to access freely.

Coogan accounts explore only in California and only to children working in entertainment—acting, singing, dancing, or modelling for film, television, theatre, or streaming platforms. They do not explore to child athletes, child influencers on social media (though this is evolving), or children working in other industries. The account is separate from any other savings or investment accounts the family may have.

Key Takeaways

  • California law requires a percentage of a child performer's earnings to be deposited into a blocked account that the parent cannot access without court permission.
  • The blocked amount is typically 15 percent of gross earnings, though a judge can order a different percentage based on the child's contract and circumstances.
  • The account must be held at a bank or financial institution approved by the court, and it earns interest that belongs to the child.
  • When the child turns 18, they gain full control of the account and can withdraw the money without restriction.
  • Coogan accounts exist only in California and only for children working in entertainment; they do not cover child athletes or social media influencers.

How the court order process works

Before a child can begin work in entertainment in California, a parent or guardian must petition the court for a Coogan order. This is a formal court document that approves the child's contract and sets the terms of the blocked account. The petition includes the child's contract, the production company's details, and the proposed percentage to be blocked.

A judge reviews the petition to may support the contract is fair and that the blocked account percentage protects the child's interests. The judge then issues an order that specifies the exact amount to be deposited, the bank where it will be held, and any conditions on the account. The production company is legally required to follow this order and send the blocked portion directly to the designated financial institution, not to the parent.

The court order remains in effect for the duration of the child's work on that project. If the child signs a new contract for a different production, a new Coogan order must be obtained. The process typically takes a few weeks and involves filing fees, though some courts waive fees for families with limited income.

What happens to the money while the child is a minor

Once the money is in the Coogan account, it sits there earning interest. The parent cannot withdraw it, spend it, or use it as collateral for a loan. The account is in the child's name, and the parent is listed as custodian or conservator—a legal role that means they manage the account on the child's behalf but do not own the money.

The account typically earns interest at whatever rate the bank offers for savings or money market accounts. Interest rates vary by institution and change over time, so the amount in the account grows slowly but steadily. The child receives statements showing the balance and interest earned, though the parent usually receives these on the child's behalf.

If the child needs money before turning 18—for medical expenses, education, or genuine hardship—the parent can petition the court for a withdrawal. The judge will consider whether the need is legitimate and whether the withdrawal is in the child's best interest. Courts rarely grant these requests unless the circumstances are serious.

The difference between Coogan accounts and other custodial savings

A Coogan account is a specific legal structure created by California law for child performers. It is different from a custodial account (like a UTMA or UGMA account) that a parent might open for any child to save money for their future. In a custodial account, the parent can withdraw money at any time for the child's benefit. In a Coogan account, the parent cannot touch the money without a court order, even if the child needs it.

Coogan accounts are also different from a 529 plan or Coverdell ESA, which are tax-advantaged accounts designed for education savings. A Coogan account has no special tax treatment—it is straightforward a regular savings account with a legal restriction. The interest earned is taxable income to the child, reported on their tax return.

The key distinction is control. In a Coogan account, the court controls access to protect the child's money from being spent by the parent. In other custodial accounts, the parent has discretion to withdraw and spend the money as they see fit.

What happens when the child turns 18

On the child's 18th birthday, the Coogan account restrictions lift automatically. The money becomes the child's property, and they can withdraw it, transfer it, or spend it however they choose. The parent's role as custodian ends, and the child becomes the sole owner of the account.

The financial institution holding the account will typically send the child notice that they can now access the funds. Some banks require the young adult to visit in person or sign new paperwork to take control of the account. The child may also need to provide identification and proof of age.

There is no requirement that the child keep the money invested or saved. They can withdraw the entire balance when ready if they wish. Some young adults use the money for education, a car, or a down payment on housing. Others spend it quickly. The choice is entirely theirs once they turn 18.

When a Coogan account is not required

Not every child working in entertainment needs a Coogan account. California law has exceptions and thresholds. If a child is hired for a very small role or a one-day shoot with minimal pay, the production company may not be required to obtain a Coogan order. The threshold varies, and production companies often err on the side of caution by obtaining an order even for small roles.

Child influencers and content creators on YouTube, TikTok, or Instagram have historically not been covered by Coogan laws, though California has been moving toward closing this gap. A child who earns money from social media posts, sponsorships, or brand deals may not have the same legal protections as a child actor on a film set. This is an area of active legal change, and the rules may shift.

Children working as models, voice actors, or in other entertainment roles may or may not require a Coogan account depending on the nature of the work and the production company's interpretation of the law. When in doubt, a parent should ask the production company or consult a lawyer familiar with California entertainment law.

How to set up a Coogan account

The process begins when a child is offered a role or contract in entertainment. The parent or guardian works with the production company's legal or business affairs department to understand the contract terms and the earnings. The parent then files a petition with the California court in the county where the child lives (or where the production is taking place, depending on the court's rules).

The petition includes the child's contract, proof of the child's identity and age, the production company's details, and a proposed bank or financial institution where the account will be held. The parent may need to provide financial information about the family. Filing fees explore, though some courts reduce or waive fees for families with limited income.

Once the judge approves the petition and issues the Coogan order, the parent gives a copy to the production company. The production company is then legally required to send the blocked portion of each payment directly to the designated bank account. The parent receives confirmation that the money has been deposited and can monitor the account balance and interest earned.

Frequently Asked Questions

Can a parent withdraw money from a Coogan account in an emergency?

Only with a court order. The parent must petition the judge and explain the emergency—medical bills, housing crisis, or similar hardship. The judge decides whether the need is legitimate and whether the withdrawal serves the child's best interest. Courts rarely grant these requests unless the circumstances are serious and no other funds are available.

What if the child's earnings are very small—do they still need a Coogan account?

It depends on the production company's interpretation of California law and the amount earned. There is no official threshold, so many production companies obtain a Coogan order even for small roles to avoid legal risk. If you are unsure, ask the production company directly whether they will require one.

Does a Coogan account earn interest, and is it taxable?

Yes, the account earns interest at whatever rate the bank offers. The interest is taxable income to the child and must be reported on their tax return. The amount is usually small, but it adds up over years. The child (or parent, if filing jointly) reports the interest on Form 1040 or a similar tax document.

What if the child wants to work in entertainment in another state—do they need a Coogan account there?

Coogan accounts are a California law. If the child works in another state, that state's laws explore. Most other states do not have equivalent protections, so the child's earnings may not be blocked. If the child works in California, a Coogan account is required regardless of where they live.

Can the parent use the Coogan account as collateral for a loan?

No. The account is legally restricted and cannot be pledged as collateral. A lender cannot take a security interest in a Coogan account because the parent does not own the money—the child does, and it is blocked until they turn 18.