With the rise of social media, child influencers, also known as digital entertainers, are earning millions of dollars through brand partnerships, sponsored content, and online engagement. Despite their financial success, these young stars remain largely unprotected by federal labor laws, and their earnings often lack the oversight and safeguards that more traditional child performers receive.

In the entertainment world, many child actors benefit from what’s known as a Coogan Account, a type of “blocked trust” designed to protect their earnings until they reach adulthood. These accounts are legally required in some states and ensure that a portion of the child’s income is set aside and cannot be accessed until they are legally able to manage it themselves.

As children increasingly earn income through digital platforms, there’s growing momentum to apply similar financial protections to child influencers. The concept of blocked trust accounts offer a promising solution by placing a portion of a child’s earnings into a legally protected account that only they can access once they become an adult or are emancipated.

These Trusts can help prevent financial mismanagement or even exploitation, especially in cases where parents or guardians oversee the child’s career and income. While most parents have good intentions, managing a child’s growing income can be complex, and without proper legal structure, funds can be mishandled or depleted over time.

It’s also important to recognize that children, especially those generating significant income, should be treated not just as dependents, but as individuals with financial rights. As the practice of “sharenting”, parents sharing and monetizing their children’s lives online, becomes more widespread, having legal safeguards in place is more important than ever.

At The Estate Planning & Legacy Law Center, we help families create customized Trust solutions that support and protect their children’s futures. Whether you’re navigating earnings from digital platforms, planning for long-term education goals, or looking to create a legacy for the next generation, we’re here to guide you through the process. Contact us today to learn more!