Lang Talent

TRUST ACCOUNTS: INFORMATION


Trust accounts are a MUST.  A minor’s legal guardian must start a Trust account for the minor before he will be allowed to work.  These New laws are going to be in forced, starting January 2000 and you must have a trust account started with proof of the account to take to the set.  This is a new law so agents, casting directors, managers, and production must try to conform to the law.  Some confusion might arise as to what you must take with you to the set to prove you have a trust account open. The producers are saying that you must have the information mentioned below with you at the time you go to the set. 

I have listed below some the information that was given to us for your reference: (Please use it as a guide line) 

1)  Section 6752 of the Family Code states that the child’s parent or legal guardian must put up a minimum of 15% of the gross earnings of the minor in a Trust account or other savings plan, until the minor is legally 18 years old or is emancipated.

2) The parent or legal Guardian must show proof of guardianship, by presenting a birth certificate or a legal document from the courts granting permanent guardianship.  They will then be considered the trustees of the account.

3)  The 15% will be deposited directly from the employer within 15 business days into the minor’s trust account.

4)   The 15% can be changed upon petition to the courts by amending the order.

5)   You must provide the minor’s employer with a true and accurate photocopy of the trustee’s statement of the trust account, at the time of the job.

6)   The trust can be established at a bank, savings and loan institution, credit union, brokerage firm, or company registered under the Investment Company Act of 1940.  The trust must be established with in 7 business days of the contract being signed.

7)   No withdrawal may be made until the minor is 18 years old.  You then must present a birth certificate to the institution to prove age.

8)  The trustee shall provide, within 10 business days after the minor’s contract is signed, a written statement showing the following: name, address, and telephone number of the financial institution, the name of the account, the number on the account, the name of the minor beneficiary, the name of the trustee or trustee of the account, and any additional information needed by the minor’s employer to deposit into the account the portion of the minor’s gross earnings. 

9)  The trustee shall attach to the written statement a true and accurate photocopy of any information received from the financial institution confirming the creation of the account, such as an account agreement, account terms, passbook, or other similar writings.

10) If the trust is established in the US. It must be in a financial institution that is insured by one of the following:  Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or the National Credit Union Share Insurance Fund (NCUSIF) or their respective successors, or with a company that is and remains registered under the Investment Company Act of 1940. 

11)The trustee may transfer funds between accounts or another savings plan at the same financial institution or company, provided that the funds transferred shall continue to be held in trust.

12) The trustee may transfer funds to another financial institution or company as long as the companies or institutions abide by the same guidelines as above.

13) The trustee may use all or a part of the funds to purchase investment funds offered by a company registered under the investment Company Act of 1940, provided that they are equity securities,  the investment fund is a broad-based index fund or invests broadly across the domestic or a foreign regional economy, is not a sector fund, and has assets under management of at least two hundred fifty million dollars: or government securities and bonds, certificates of deposit, money market instruments, money market accounts, or mutual funds investing solely in those government securities and bonds, certificates that have a maturity date on or before the date upon which the minor turns 18 years old. Any proceeds accruing must be re-deposited into that account or used to purchase more similar securities, bonds, etc. that abide by the above-mentioned guidelines.

14)  Some banks and investment firms that are doing the trust accounts:

a)      Pain Webber

b)      Morgan Stanley

c)      Dean Witter

d)      Wells Fargo  (WFI account)( $1 initial investment required and no fees or minimum needed)

e)      City National ( requires $100 to open and a minimum of $1000.00 in the account in order not to have a service charge of $9 quarterly)