What does Trust Accounts mean?
Trust Accounts refer to accounts set up to hold and manage money on behalf of another person or entity, often used in the entertainment industry for child actors or performers. A common example is a Coogan account, which is a type of trust account required by law in certain regions to protect a portion of child performers’ earnings until they reach adulthood. Trust accounts are also used in other financial arrangements where one party is responsible for managing funds on behalf of another. Related terms include Coogan Account, which is specifically for child performers, and Escrow, a type of financial arrangement used in contracts.
Example:The young actor’s earnings are deposited into a Coogan trust account, which he will have access to once he turns 18.
Example: The producer sets up a trust account to manage funds for the film’s production, ensuring that payments to vendors and crew are handled responsibly.
Did You Know?
In many regions, trust accounts are legally required for child actors to ensure their earnings are protected until they reach adulthood!
You can also find “Trust Accounts” and related terms in this category: Entertainment Law.
