Uncle Fester and Justin Bieber

Coogan in The Kid

Well before before Uncle Fester shaved his head and joined the Addams Family, the actor Jackie Coogan was appearing in silent film alongside Charlie Chaplin.  Unfortunately for Jackie, his parents spent all the money from his work and when he  turned 18 he had little to show for his time on stage and screen.  The spectacle  of a child star of Coogan’s stature being exploited in that way led to a California Law requiring that child performers be paid in such a way that around 15% of their pay is automatically placed into an untouchable trust fund that only they will be able to access when they turn 18 – many states around the country now have similar laws and they are typically referred to as Coogan Laws.  It is estimated that Bieber is worth around 100 million dollars.  While its impossible to know how much of that is held in a Coogan Trust, it is likely that upon his 18th birthday upwards of 15 million will available to him to spend freely and without oversight – not a bad birthday present.

While contracting with minors is always an issue when considering the enforceability of the agreement,  you also have to be aware of whether your state requires a portion of funds to be paid directly to a trust fund.  This is a matter handled on a state by state basis – presently performers in California, New York, Louisiana, and Arizona are subject to the trust requirements.  Other states have addressed the concern raised in the Coogan case by affirming that the earnings of the child are the child’s property (not the parents as was the argument of Coogan’s mother and father), and that the parents have a fiduciary obligation to safeguard the property.

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