BIZPARENTZ COOGAN BANK SURVEY 9/2007
This phone survey was conducted within a 2 business day period on 9/7/2007 and 9/10/2007. The surveyors did not identify themselves as taking
a survey, but rather conducted the call as any anonymous parent might when asking about Coogan accounts. Banks were not advised of any
discrepancies in their procedures. Because of the “blind” nature of this survey, readers MUST realize that the information listed here cannot be
accepted as fact. It is simply what an employee of the financial institution reported to one caller on that given day. Interest rates quoted must be
used for general comparison ONLY. Parents are advised to do their own research before making any financial decisions. We are NOT offering
financial advice and do not claim to do so.
Types of “Coogan” accounts
The term “Coogan” is sometimes incorrectly used. In California, it is very specific in the law which defines the account as a BLOCKED TRUST.
This means a Coogan Blocked Trust account cannot have withdrawals—no access by anyone until the child is 18. At this date, California is the
only state to define Coogan accounts this way, however, it is the most common interpretation since most production companies are based in
California and must follow CA law. New York, Louisiana, and New Mexico all have minor’s trust accounts, but they are not defined as “blocked”
(technically not “Coogan accounts”). Because if this, UTMAs (Uniform Transfer to Minor Account) UGMAs (Uniform Gift to Minor Account) are
allowed. Parents are advised to be very sure of which kind of account they need. In general, the strict CA model is accepted in all states. In
Canada, either the government or the Canadian union handle Coogan trusts, depending on where a child works/lives.
Types of Financial Institutions
Coogan accounts may legally be opened at any one of THREE TYPES of FINANCIAL INSTITUTIONS: banks, credit unions, and other
investment advisors. All three types are included in this survey. Banks are for-profit businesses. Credit Unions are not-for-profit institutions
“owned” by their members. Investment advisors are brokerage firms, financial “advisors” and the like—they specialize in selling stocks, bonds,
mutual funds and other investment vehicles.
A note about investments
Parents, as trustees of the child’s money should consider their “prudence” duty when making Coogan choices for their child. As Trustee, you are
required to do “what any prudent person would do” in making financial decisions. Basically, this means keeping balance—not making risky
investments, but also doing your best to get the highest return possible—in a SAFE manner. Rates of return that do not outpace inflation are
frowned upon. All investments CAN lose money, and financial advisors are required by law to give you a prospectus before you invest. For the
investment advisors we spoke to, this prudence duty and need for balance leads them to a Balanced Fund, which is a grouping of stocks and
mutual funds with low risk...designed to be “balanced” as the name implies. When purchasing investments, it is also important to understand that
there are different ways to purchase stocks and funds, based on an ABC system. A, B, and C Shares have different percentage costs involved
and one way of purchasing may be more advantageous depending on the age of the child. Because this gets a little complicated, it is suggested
that you contact a legitimate financial advisor before purchasing investments with your child’s Coogan money.
Survey Legend on Page 4
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BIZPARENTZ COOGAN BANK SURVEY 9/2007
Financial Institution
Actors Federal CU
New York
212-869-8926
(has NY options)
AFTRA/SAG Credit
Union
800-562-3400
www.aftrasagfcu.org
*has NY options
Opening
New
Coogans?
Y
# of Call
Transfers+
Coogan
Contact
Knowledge
Rating ++
2
n/a
8
Y
1
Donna
Hurst
(Coogan
Desk)
10
Coogan
portfolio
avail by
mail,
website
section
Interest
Rate
TODAY*
1.9% 2.15%
Requirements to
Open
Min.
Deposit
Fees?
Investment
Options**
BC, picture ID
No
No
CD or IRA
.501%
on
regular
savings
of
$1000,
CDs up
to 5%
n/a
Union eligible,
CU app, SS,
BC
$50
w/in
1st yr.
$5 member
fee, no
commission,
but
investment
fees if
chosen
CD, MM,
Mu, S,
Other
Banking
Options**
Yes
Closing
Requirements
At 18
ID
MS, On,
Von, ED,
CC
(w/int),
ATM for
child,,
VISA
BC, Pic ID
Has several
thousand
Coogans
Bank of America
(Hollywood Br)
Melrose
323-730-9140
Citibank
800-321-2484
City National Bank
818-487-7515
N
4 plus 8
min. wait
n/a
n/a
N
1
n/a
n/a
Y
6, and
then
asked to
call
back ;
called
back
with 1
transfer
Anne is in
charge, but
her
replacement
didn’t know
and asked
to call back
?
?
?
?
?
?
?
?
Downey Savings
Y
2
n/a
4
CDs
at .41%
BC, Parent ID,
SS
$5
No
CD
“all
money
must be
in
Coogan”
(incorrect)
“court
order”
(incorrect)
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The BizParentz Foundation – www.BizParentz.org
BIZPARENTZ COOGAN BANK SURVEY 9/2007
Financial Institution
Opening
New
Coogans?
# of Call
Transfers+
Coogan
Contact
Knowledge
Rating ++
Interest
Rate
TODAY*
Requirements to
Open
Min.
Deposit
Fees?
Investment
Options**
Other
Banking
Options**
Closing
Requirements
At 18
First Entertainment
Credit Union
888-800-3328
www.firstent.org
*also UTMA
accounts
Y
2
Anyone
8
1%
2 forms of ID
from parent
Coogan app is
on website,
only a part of
the
entertainment
industry OR
geographically
in their area for
membership
$0 reg.
but
deposit
in 90
days
Member
fee, no fees
on Coogan
CD, MM
QS, On,
ED, Von,
CC
BC of minor
First Republic Bank
Studio City
(818)752-4777
N
1
n/a
n/a
n/a
Union Bank of CA
Studio City
(818)755-0180
Wachovia Securities
866-966-3131
Y
Busy,
then 1
n/a
5
.25%
BC
No
No
Yes
ID
Y
0
Dave, but
we talked to
asst.
7
?
No
Stocks
No
BC
Waddell & Reed
714-437-7510
*has NY options
Y
1
Todd
10
Rate
varies,
buying
stock
Rate
varies,
ex.
5.41%
for MM
nothing
$0
$3/mo until
you have
$300
$60 annual
fee; low
balance fee
of $25/yr
Y, variable
by fund;
5.5%
commission,
$5/yr fee
MM, Mu,
IRA
does 10-12
Coogans a
week
Washington Mutual
323-662-3151-
Y
6
Rebekah
2
“we don’t
know
much,
you have
to go into
branch”
n/a
n/a
n/a
n/a
n/a
QS, On,
ED, Von,
CC (MM
have
limited ck
writing)
EP
n/a
Wells Fargo
(Studio City)
818-980-6105
Y
1
Dan
8
.5% for
$1000
plus
2 IDs,
PROOF OF
EMPLOYMENT
$25
No
No
Yes,
separate
accounts
BC
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BIZPARENTZ COOGAN BANK SURVEY 9/2007
SURVEY LEGEND:
+Number of telephone transfers before speaking with someone who could answer questions
++Knowledge Rating is a totally subjective review of the institution’s knowledge about Coogan, based on phone calls, whether they have a brochure relating to Coogan, a designated
staff person who is knowledgeable about Coogan, info on website, etc.
*Interest rates quoted for the date 9/7/07. This rate is simply a SAMPLE of a possible interest rate to be used solely for COMPARISON and should not be construed as a promise or
prospect of upcoming rates offered.
**Investment Options Legend: N=None
CD=Certificate of Deposit
Mu=Mutual Funds MM=Money Market Savings
S=Stocks and Bonds
***Banking Options Legend: N=None MS=Monthly Statements QS=Quarterly Statements AO=Statements Issued Only when there is activity
On=On-line Banking Available ED=Electronic Deposits of Paychecks Von=View Deposit Checks On-line CC=Companion Checking account offered with the child’s name on it for
the other 85% of the paycheck ATM=Child ATM offered (for the other 85%)
VISA=Visa card with child’s name EP=Education Planning Service Ins= Insurance
IRA=Individual Retirement Accounts
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The BizParentz Foundation – www.BizParentz.org