What does Child Actor Trust Fund mean?
Child Actor Trust Fund refers to a financial account set up to hold a portion of a child performer”s earnings, protecting their income until they reach adulthood. In some states, like California and New York, this is mandated by law in the form of Coogan Accounts, but other states may not have specific regulations. These trust funds are essential to ensure that at least a portion of the child actor’s earnings are safeguarded for their future, shielding them from potential mismanagement by parents or guardians. Parents can also voluntarily create a Child Actor Trust Fund as a financial safety measure, even if their state does not require it.
Example:A child actor”s earnings from a national commercial were placed into a Child Actor Trust Fund, ensuring the money is reserved for their future education or personal use once they reach 18.
Example: Despite state law not requiring it, parents of a young actor voluntarily set up a Child Actor Trust Fund, securing 15% of their child”s earnings from a streaming series for future needs.
Did You Know?
Child Actor Trust Funds, like Coogan Accounts, are meant to safeguard the future of young performers by legally holding a portion of their earnings until adulthood!
You can also find “Child Actor Trust Fund” and related terms in this category: Entertainment Law.
