Try "City National Bank" or "Actors Federal Credit Union." A blocked account with a federally insured bank is for the benefit of the Minor until the minor reaches the age of 18 years.
In Aragon v. Prop. & Cas. Ins. Co. of Hartford, No. 2:13-CV-01728-GMN, 2015 WL 1432605 (D. Nev. Mar. 3, 2015), the court held that funds be "placed in a blocked trust account with City National Bank, a federally insured financial institution in the State of Nevada, 2320 E. Tropicana Avenue, Las Vegas, Nevada 89119, until [minor] reaches 18 years of age, at which time the funds will be removed with a court order."
Courts usually require settlement proceeds to be placed in a blocked account that is FDIC insured. That usually prevents more aggressive investing.
A parent or guardian ad litem could file a motion with the court asking for approval put the funds in a more aggressive account, such as a 529 account invested in a target enrollment fund until the minor turns age 18 that will grow tax free if used for education where the minor at age 18 becomes both owner and beneficiary of the 529 account. The minor could then decide to use the money for college or do a Roth IRA rollover. Consider getting an affidavit from a certified financial planner on the benefits of a 529 and target enrollment date funds in support of the motion. The worst that the court could do is deny the motion and it might cost a few hundred bucks for a lawyer to file a motion, or a parent could file the motion without a lawyer pro se. The motion could include comparison of CD rates and historical returns in target enrollment date funds in a 529.
A blocked account is also known as a Coogan Account for child actors based on a case involving the Jackie Coogan lawsuit. Some states have passed laws protecting child actors. See Maggioni C. Casseus, Mom's Social Media Account Featuring Her Kids: New York's Amended Coogan Act Exemplifies the Method to Regulate Parental Exploitation, 52 Hofstra L. Rev. 753, 771 (2024). Consider a search for banks and credit unions that have Coogan Accounts.
In Aragon v. Prop. & Cas. Ins. Co. of Hartford, No. 2:13-CV-01728-GMN, 2015 WL 1432605 (D. Nev. Mar. 3, 2015), the court held that funds be "placed in a blocked trust account with City National Bank, a federally insured financial institution in the State of Nevada, 2320 E. Tropicana Avenue, Las Vegas, Nevada 89119, until [minor] reaches 18 years of age, at which time the funds will be removed with a court order."
Courts usually require settlement proceeds to be placed in a blocked account that is FDIC insured. That usually prevents more aggressive investing.
A parent or guardian ad litem could file a motion with the court asking for approval put the funds in a more aggressive account, such as a 529 account invested in a target enrollment fund until the minor turns age 18 that will grow tax free if used for education where the minor at age 18 becomes both owner and beneficiary of the 529 account. The minor could then decide to use the money for college or do a Roth IRA rollover. Consider getting an affidavit from a certified financial planner on the benefits of a 529 and target enrollment date funds in support of the motion. The worst that the court could do is deny the motion and it might cost a few hundred bucks for a lawyer to file a motion, or a parent could file the motion without a lawyer pro se. The motion could include comparison of CD rates and historical returns in target enrollment date funds in a 529.
A blocked account is also known as a Coogan Account for child actors based on a case involving the Jackie Coogan lawsuit. Some states have passed laws protecting child actors. See Maggioni C. Casseus, Mom's Social Media Account Featuring Her Kids: New York's Amended Coogan Act Exemplifies the Method to Regulate Parental Exploitation, 52 Hofstra L. Rev. 753, 771 (2024). Consider a search for banks and credit unions that have Coogan Accounts.
Statistics: Posted by legalwriter1 — Fri Feb 28, 2025 10:15 pm