Minor Trust Accounts

Employing minors in the entertainment industry is common but surrounded by stipulations that differ based on the location of your production. Below are a few of the topics most frequently discussed when engaging minors in entertainment productions.

States currently requiring a minor to have a Blocked Trust Account are California, Louisiana, New Mexico, and New York. To ensure that the money a minor earns is safeguarded from misuse, 15% of the minor’s gross wages are required to be withheld by the employer and deposited into the trust account within 15 days of employment. These trust accounts are set up by the minor’s parent or guardian and the information is supplied to the production at the time of employment.

California

Parents in CA are required to open a “Coogan” Account and must be opened with a CA bank. A Coogan Account is a special blocked trust fund account found at a bank, credit union or brokerage firm.

New York

Parents in NY are required to open a UTMA or UGMA compliant trust account. The account may be opened with any bank, in any state, so long as it meets UTMA or UGMA requirements.

Louisiana

Parents in LA are required to open a Blocked Trust Account with any bank, in any state.

New Mexico

Parents in New Mexico are required to open a blocked trust account only if their child earns more than $1000 per each employment contract.

Helpful Links:

U.S. Department of Labor – Child Labor Laws

https://www.dol.gov/agencies/whd/state/child-labor/entertainment

https://www.dol.gov/general/topic/youthlabor/entertainmentemployment