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Coogan Trust Agreement

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COOGAN TRUST AGREEMENT

This Coogan Trust Agreement (the "Agreement") is made as of the date set forth below by and between Settlor Name: (hereinafter "Settlor") and Trustee Name: (hereinafter "Trustee"). The Beneficiary of this trust is Child Name: , born Month: Day: Year: .

RECITALS

WHEREAS, Settlor is the parent or legal guardian of the Beneficiary and has the legal authority to establish a trust for the benefit of the Beneficiary; and

WHEREAS, the Beneficiary is a child performer who receives earnings, bonuses, residuals, royalties, or other compensation arising from employment or services rendered in the entertainment industry (collectively, "Earnings"); and

WHEREAS, Settlor desires to create a trust consistent with applicable protective trust laws to preserve and administer a portion of the Beneficiary's Earnings for the Beneficiary's benefit and to provide for the Trustee's powers, duties and limitations as set forth herein.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the parties agree as follows:

1. NAME OF TRUST

The Settlor hereby establishes a trust to be known as: (the "Trust").

2. DECLARATION OF TRUST; IRREVOCABILITY

Settlor hereby transfers and delivers to Trustee, and Trustee accepts, the property described in Section 3, to hold in trust for the Beneficiary subject to the terms of this Agreement. This Trust is declared to be Irrevocable Revocable (select applicable box). If no box is selected, the Trust shall be treated as irrevocable. Unless otherwise indicated, the Trust shall be administered as an irrevocable trust for all purposes of this Agreement.

3. TRUST PROPERTY

The Settlor and any third party shall cause not less than percent (%) of the Beneficiary's gross Earnings to be deposited to the Trust within thirty (30) days of receipt by the payor of such Earnings. The Trustee shall establish and maintain suitable account records for such deposits.

4. BENEFICIARY; BENEFICIAL INTEREST

The Beneficiary of the Trust is the child named above. The Trustee shall hold the Trust property for the sole benefit of the Beneficiary until distribution in accordance with Section 6. No other person shall have any beneficial interest in the Trust property except as expressly set forth in this Agreement.

5. DUTIES AND POWERS OF TRUSTEE

Trustee shall have all powers necessary to administer the Trust, including but not limited to: to accept, hold, invest and reinvest Trust property; to collect and receive Earnings; to open and maintain bank or custodial accounts in the name of the Trust; to make disbursements consistent with Section 6; to engage agents, accountants, legal counsel, investment advisors and custodians; and to compromise, settle or release claims for or against the Trust. Trustee shall exercise such powers in good faith, in the best interests of the Beneficiary, and in accordance with the standard of care required by applicable law.

6. DISTRIBUTIONS; USE OF FUNDS

The Trustee may authorize distributions of principal and income from the Trust for the Beneficiary's health, education, maintenance, support, and general welfare. Distributions for the Beneficiary's benefit shall be discretionary, subject to the following mandatory rule: the Trustee shall not make distributions that would deplete funds required to preserve funds objectively necessary for the Beneficiary's future needs, except as reasonably necessary under the circumstances.

The Trust property shall be payable outright to the Beneficiary upon attainment of age: . If the Beneficiary dies prior to attainment of such age, remaining Trust property shall be distributed as set forth in Beneficiary's Testamentary Disposition: or, if none, to the Settlor's estate.

7. INVESTMENT AND MANAGEMENT

Trustee shall invest and manage Trust assets prudently and in accordance with any statutory prudent investor rules. Trustee may consider long-term growth, tax consequences, liquidity needs and the Beneficiary's probable circumstances. Trustee may delegate investment discretion to a qualified investment advisor and shall supervise such delegation.

8. ACCOUNTING; RECORDS; REPORTS

Trustee shall keep accurate and detailed accounts of all receipts, disbursements and transactions involving Trust property. Trustee shall furnish to Settlor and, when the Beneficiary attains majority, to the Beneficiary, annual statements of account showing receipts, disbursements, fees and the condition of the Trust. Trustee's books shall be prima facie evidence of Trustee's acts.

9. TRUSTEE COMPENSATION AND EXPENSES

Trustee is entitled to reasonable compensation for services rendered and reimbursement for reasonable expenses incurred in the administration of the Trust. Such compensation and expenses shall be paid from Trust assets in accordance with customary practices for similar trusts and any applicable statutory limitations.

10. REMOVAL AND SUCCESSOR TRUSTEE

A Trustee may be removed for cause by a court of competent jurisdiction or by written agreement of the Settlor and the Beneficiary when the Beneficiary attains majority. The Settlor may nominate successor trustees; if no nomination is effective, a court may appoint a successor trustee. Any successor trustee shall have all powers granted to the original Trustee and shall succeed without further instrument.

11. NOTICES

All notices required or permitted hereunder shall be in writing and shall be deemed given when delivered personally or mailed by certified mail, return receipt requested, to the addresses provided above, or to such other address as a party may designate in writing.

12. AMENDMENT

This Agreement may be amended only by a written instrument signed by the Settlor and the Trustee, except that no amendment that would adversely affect the Beneficiary's rights as to amounts required to be held under applicable protective trust law shall be effective without the Beneficiary's written consent or a court order.

13. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflicts of law principles. This Agreement embodies the entire understanding and agreement between the parties with respect to the subject matter hereof and supersedes all prior oral or written agreements. If any provision of this Agreement is held invalid or unenforceable, such invalidity shall not affect the remaining provisions, which shall continue in full force and effect.

14. WAIVER; COUNTERPARTS

No waiver by any party of any breach or default shall be deemed a waiver of any subsequent breach or default. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

MISCELLANEOUS

If at any time the Trustee incurs expenses or liabilities in connection with the Trust, the Trustee may pay such expenses from Trust assets, and the Trustee shall have a lien on Trust property for reimbursement. The Trustee may rely upon written instructions, certificates, opinions of counsel, and other documents reasonably believed to be genuine.

Settlor:

Print Name:

By:

Date:

Trustee:

Print Name:

By:

Date:

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What the Coogan Trust Agreement Is and when it applies

A Coogan Trust Agreement establishes a blocked trust or custodial account to preserve a portion of a minor performer’s earnings, protecting those funds until the minor reaches majority or a court-authorized release occurs. While commonly associated with California child performer protections, the agreement is a legal trust instrument that defines trustee powers, beneficiary identity, funding source, distribution rules, and any statutory hold or court oversight. Practitioners use the document to document employer payroll withholding, name the trustee and successor trustee, set distribution triggers, and confirm compliance with applicable state child labor or trust statutes.

Why a formal Coogan Trust Agreement matters

A formal agreement documents protection for a minor’s earnings, assigns trustee duties, and reduces litigation or administrative disputes; it aligns the parties with state child-labor and trust law and creates a clear record of withheld funds and release conditions.

Why a formal Coogan Trust Agreement matters

Who typically prepares and signs a Coogan Trust Agreement

Parties and professionals commonly involved in a Coogan Trust Agreement include parents, guardians, employers, managers, and attorneys; institutions that hold funds may also be parties.

  • Parents or legal guardians — signatories and initial trustees for the minor’s benefit.
  • Employers or production payroll agents — set aside and remit mandated withheld funds.
  • Trustees and financial institutions — accept and administer the blocked account or trust.

Coordination between payroll, legal counsel, and the chosen trustee ensures the agreement is funded correctly and records are retained for auditing and future distribution.

Essential information to include in the agreement

Minor’s Name: Full legal name as on government ID
Date of Birth: MM/DD/YYYY format
Social Security: SSN or ITIN for tax reporting
Employer Details: Legal name and payroll contact
Trustee Identity: Name and contact for trustee
Funding Amount: Percent or dollar amount withheld

Potential penalties and legal risks

Failure to Fund: Civil liability, wage claims
Incorrect Beneficiary: Distribution disputes
Improper Trustee: Fiduciary breach exposure
Missing Records: Audit and tax penalties
Early Release: Court-ordered reversal risk
Tax Reporting Errors: IRS penalties or withholding

Common mistakes when preparing a Coogan Trust Agreement

  • Using informal language that fails to name a successor trustee or specify distribution triggers, creating ambiguity at the time of release.
  • Mismatching the minor’s legal name or SSN between payroll, tax forms, and the trust account, which can trigger IRS backup withholding or delayed distributions.
  • Failing to coordinate payroll withholding with the trustee or bank, resulting in misapplied funds or accounting discrepancies between employer and custodian.
  • Assuming uniform state rules apply; relying on another state’s practice can produce noncompliance when the production or minor’s domicile has different statutory requirements.

Step-by-step: completing a Coogan Trust Agreement

Follow these core steps to prepare, fund, and record a Coogan Trust Agreement so the minor’s earnings are protected and administrative duties are clear.

  • 01
    Identify parties: Enter full names and roles for beneficiary, trustee, and employer.
  • 02
    Describe funding: Specify percentage or dollar withholding and payroll schedule.
  • 03
    Define distributions: Set release conditions, age of majority, or court approvals.
  • 04
    Sign and notarize: Obtain required signatures and any notarization or witness steps.

Configuring an online workflow for this agreement

Set up a digital signing workflow that places required fields, routes the document, and captures an audit trail for compliance.

Field Configuration
Signature Block Require signature + date for each signatory; enforce required field
Notifier Add email reminders and conditional routing to trustee
Authentication Choose email or SMS code signer verification
Audit Trail Capture timestamps, IPs, and certificate of completion

Digital signing and distribution considerations

Use an e-signature platform that supports audit trails, PDF output, and secure storage to maintain a defensible record of the agreement.

  • File formats: PDF or DOCX preserved for records
  • Integrations: Link to payroll or cloud storage
  • Authentication: Email, SMS, or KBA per risk

Where to send, file, and store the completed agreement

After execution, route copies to payroll, the trustee, and legal counsel; retain the original executed agreement with the custodian bank or trust administrator.

  • To Payroll: Provide executed agreement to payroll for withholding
  • To Trustee: Deliver signed trust document and funding instructions
  • To Bank: Open blocked account or deliver required account forms
  • To Counsel: Retain one executed copy with attorney file for audit

Key timing and processing expectations

Track funding, reporting, and periodic reviews to avoid late transfers or tax errors; timelines vary by employer payroll cycles and state requirements.

Initial Funding:

Fund at the next payroll or as soon as practicable

Payroll Reporting:

Report withheld amounts on payroll and tax forms promptly

Annual Review:

Reconcile trust and payroll at least annually

Distribution Trigger:

Release at age of majority or court order

Record Retention:

Retain records per tax and trust rules

Practical scenarios for Coogan Trust Agreements

These real-world scenarios show how typical situations are handled when funds, trustees, and release conditions must be coordinated.

Child Actor on Series

A minor signs for recurring TV work

  • Payroll withholds a fixed 15% of earnings
  • The trustee holds funds in a blocked account; distributions occur at age 18 or per court authorization, and records reconcile annually with payroll and tax filings.

Commercial Work and One-Time Pay

A minor receives a single commercial payment

  • Employer deposits amount into named trust account
  • Trustee documents receipt, issues quarterly statements to parent, and releases funds at majority after identity verification and required paperwork.

Core sections a professional agreement should include

A complete Coogan Trust Agreement clearly allocates roles, specifies funding mechanics, and prescribes distribution and audit procedures to reduce downstream disputes.

Parties

Identifies beneficiary, parents/guardian, trustee, successor trustee, and any employer or payroll agent responsible for withholding and remitting funds.

Funding Terms

Specifies percentage or amount withheld from each paycheck, timing of transfers to the trust, and the method of remittance to the custodian bank or trustee.

Trust Administration

Describes trustee powers, permitted investments, accounting duties, reporting frequency, and indemnification for trustee acts performed in good faith.

Distribution Conditions

States age of majority, allowable early-release circumstances, required documentation for release, and whether court approval is necessary.

Tax and Reporting

Allocates responsibility for tax reporting, identifies the TIN used for account reporting, and requires cooperation to correct reporting errors.

Dispute Resolution

Includes governing law, venue, and preferred dispute process (mediation or court) to minimize contested proceedings over funds.

Sample eSignature vendor comparison for executing Coogan Trust Agreements

This table summarizes common plan and compliance criteria across vendors; signNow appears first per platform positioning and offers lower starting pricing on annual plans.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day Yes Yes Yes Yes
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

FAQs and troubleshooting for Coogan Trust Agreements

Answers to common questions about execution, e-signatures, trustee selection, and correcting errors when administering a Coogan Trust.


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