Do Minors Own the Money They Earn? A US Legal Guide for Young Content Creators
Imagine a 16-year-old who edits videos in their bedroom and gets a brand deal worth $5,000. Who does that money belong to: the teen, the parents, or both? A few years ago, the honest answer in most of the United States was "probably the parents." Today, the answer depends on where you live, how old the child is, and how the money was earned.
This guide explains the rules in plain language for young creators, parents, and anyone working with them.
The Short Answer
Under traditional US law, a minor's earnings usually belonged to the parents, as long as the child was living at home and not legally emancipated.
That is changing. A growing number of states now require some of a child's content earnings to go into a protected trust, or even to be paid to the child directly.
Rules differ by state. Illinois, California, Minnesota, Utah, Montana, Arkansas, and Virginia have all passed laws aimed at child influencers, and more states are considering them.
At 18, the money in a trust becomes the young person's. Many of the new laws also let adults who appeared in content as kids ask to have it deleted or sue if the rules were ignored.
Why This Question Matters Now
Kids have always worked in entertainment, but social media changed the picture. A child can now be the star of a family channel, a toy reviewer, a gamer, or a fashion creator, and the income can reach six or seven figures.
The problem is that the money usually lands in a parent's account. Platforms like YouTube generally require an adult to own the monetization account. Brand deals are usually signed by a parent. Legally and practically, the parent controls the cash.
That is exactly how the first famous case of child earnings trouble happened, long before the internet.
A Short History: The Coogan Law
In the 1920s, Jackie Coogan was one of the most famous child actors in the world. When he grew up, he discovered that his parents had spent nearly everything he earned. At the time, the law treated a child's earnings as belonging to the parents, so he had little legal recourse.
Public anger led California to pass the California Child Actor's Bill, known today as the Coogan Law. Its main ideas are:
A blocked trust account. The employer must set aside 15% of a child performer's gross earnings in a special account, often called a "Coogan account."
No early access. Parents cannot withdraw from it. The child gets the money at 18 or when legally emancipated.
Court approval of contracts. A judge can approve a minor's contract so the child cannot later cancel it, as long as the deal is fair and includes the required set-aside.
Several other states, including New York, Louisiana, and New Mexico, have similar protections for child performers.
The Default Rule: Who Owns a Minor's Earnings?
Here is the basic legal picture before any special creator laws apply.
Parents have both duties and rights. They must support their child, and in return the law has traditionally allowed them to claim the child's earnings while the child is a minor and unemancipated. This general rule comes from old common law, and states have adjusted it in different ways.
Minors have limited power to make contracts. A person under 18 generally cannot be held to a contract the way an adult can. In most states, a minor can "disaffirm," meaning cancel, a contract. This is why brands often want a parent to sign, and why some deals include a parent as a guarantor. A parent who signs as guarantor can still be on the hook even when the child walks away.
Money in a protected account is different. Funds inside a Coogan-style trust or a custodial account are treated as belonging to the child. Parents cannot simply spend them.
So, in most states without a creator-specific law, the answer is: a minor does not have an automatic right to control the money, but a parent also cannot ignore the new rules in states that have them.
State Laws That Protect Young Creators
These laws apply to two situations: parents who make money from content featuring their kids (family vlogging), and kids who create or are hired as creators themselves. Here is a summary of the main ones. Details can change, so always read the current text of the law.
State | Who it covers | What it requires |
Illinois (in effect since July 1, 2024) | Children under 16 featured in at least 30% of a vlogger's paid content over 30 days, with enough views to count | The parent or creator must put a share of gross earnings into a trust at least equal to the child's share of the video. They must keep records, report to the state labor department, and the money stays locked until the child turns 18 or is emancipated. Adults who appeared as kids can sue for damages if the rules are ignored and can ask for content to be deleted. |
California (since Jan. 1, 2025) | Two laws. One covers kids featured in at least 30% of a family creator's content. The other covers brands that hire a minor directly. | Family creators must put 65% of the child's proportional share of gross earnings into a trust. Businesses hiring a minor as a content creator must pay 15% into a Coogan trust. |
Minnesota (since July 1, 2025) | Minors in monetized content | Children under 14 cannot work in content creation, and if one is featured, the child is entitled to 100% of the money tied to their appearance. Teens 14 to 17 who make their own content are entitled to their own compensation. Kids 13 and older can request that content be deleted. |
Utah (2025) | Parents who earn large amounts from content featuring their kids | Reported as requiring 15% of earnings into a trust once content revenue passes $150,000 a year. |
Virginia | Minors engaged in content creation | A trust account held by a financial institution or trust company, available to the child at 18 or on emancipation. The child, or a parent or guardian for the child, can sue to enforce it. |
Montana and Arkansas (2025) | Content creators who feature minors | Added trust or protection requirements to their child labor laws. Details differ, so read the current statute. |
Some other states, including New Jersey and New York, have considered similar bills. Check your own state's current law, because the list is likely to keep growing.
Does a teen own the money from their own channel? State by state
Short answer: in most states, the law does not clearly say a teen owns the money from their own channel. Only Minnesota clearly does. Most new laws protect kids who appear in a parent's or another adult's paid content, not teens who run their own accounts. Where no creator law applies, the older rule usually still holds: until age 18 or emancipation, parents are generally entitled to a minor's earnings, unless they agree otherwise or a court-approved contract says differently.
Here is where each state stands for a teen who creates and publishes their own content.
State | Does the teen own the money from their own channel? | What the law says |
Minnesota | Yes, for ages 14 to 17 | A minor 14 or older who produces, creates and publishes their own content is entitled to all of the compensation. Kids under 14 cannot work in content creation, and if one is featured in an adult's content, the child gets 100% of the proceeds tied to their appearance. |
California | Partly | If a brand or business hires a minor directly as a content creator, 15% of gross pay must go into a blocked Coogan trust that belongs to the teen. The law does not clearly say who owns the other 85%, so the contract and the general parent rule apply. The 65% family-content rule covers kids featured in someone else's channel, not a teen's own. |
Illinois | Not clearly | The law targets adult vloggers who feature children under 16, and its definition of "vlogger" leaves out people under 16. No rule gives a teen ownership of their own-channel income. |
Utah | Not clearly | The trust rule is aimed at parents who earn more than $150,000 a year from content featuring their kids. |
Montana | Not clearly | The 2025 Child Digital Protection Act covers a creator's own minor child who appears in paid videos (at least 30% of the creator's paid content, earning at least $0.10 per view). The creator must put a share of earnings in a trust until the child turns 18. |
Virginia | Not clearly | Content creators must put the child's share into a trust that the child gets at 18 or on emancipation. The child, or a parent or guardian for the child, can sue to enforce it. The law is built around kids featured in a creator's videos. |
Arkansas | Not clearly | A 2025 law (HB 1975) adds trust and content-removal rules for minors featured in creator content. I did not find a clear rule on a teen's own-channel income. |
All other states | Usually no: the default parent rule applies | I did not find a creator-specific law in force. Bills have been proposed in states like New York and New Jersey, so check for updates. |
What this means for you
Teen in Minnesota (14 to 17): the money from your own content is yours by law. Ask for it to be paid into an account in your name.
Teen in California with a direct brand deal: 15% must be locked in a trust for you. Ask the brand to confirm the trust account before you sign, and get the split of the remaining money in writing.
Teen anywhere else: assume your parents legally control the money unless they agree otherwise in writing.
Two things can change the answer in any state: a written agreement in which a parent gives the money to the teen (often through a custodial account), and court emancipation. Both are covered below.
These laws are new and changing, and I could not confirm every state's final text. Check your state labor department or a licensed attorney for the current rule where you live.
Because so many states leave this gap, put the arrangement in writing and set up a protected account early, even where the law does not force you to.
Can a Minor Open a Bank Account or Sign a Brand Deal?
Bank accounts. Most banks require a parent or guardian to open an account for a child under 18. Common options include:
Custodial account (UTMA or UGMA): An adult manages the money, but it legally belongs to the child. The child takes over at the age set by the state, usually 18 or 21.
Joint account: A teen can usually deposit and withdraw, often with a debit card, though the bank may set limits for minors. The parent is also a full owner, so the parent can withdraw any or all of the money. This account does not protect a teen's earnings from a parent. Rules vary by bank.
Coogan or trust account: Locked until adulthood. Required in the states above.
Custodial Roth IRA: Yes, a parent or another adult must open it. A minor cannot sign the account contract, so the adult acts as custodian and manages the account until the child reaches the age of majority (18 in most states). The money legally belongs to the child, and the custodian must use it for the child's benefit. The teen needs real earned income, such as pay or net self-employment earnings from content. Anyone can put money in, but total contributions in a year cannot exceed the teen's earned income or the yearly IRA limit, whichever is lower. Keep records of your earnings to prove it. It is a strong long-term option for money a creator wants to keep growing.
Brand deals and contracts. A contract with a minor can often be canceled by the minor. Brands know this, so they usually ask a parent to sign. Before signing, look for:
Who gets paid, and into which account
How long the brand can use your content and likeness
Exclusivity clauses that block you from working with competitors
Whether a parent is personally guaranteeing the deal
Whether the brand must pay into a Coogan trust (required in California for direct contracts)
If the contract says the money is paid to the teen, is it the teen's?
It helps a lot, but it is not a guarantee. A contract that names the teen as the person to be paid is strong evidence that the money is meant to be the teen's. A parent who signs it will find it hard to claim the money later. Four things can still change the result:
A minor usually cannot hold an account alone. The payment typically goes into an account run by an adult. If it lands in a parent's personal account, the money may be treated as the parent's.
Who signed matters. If a parent signs for the teen, the contract is the parent's promise as well. A minor can often cancel their own contract, but the brand still pays whoever the contract names.
State law can override the contract. In Minnesota, a teen aged 14 to 17 owns the money from their own content by law. In California, 15% of a direct payment must go into a Coogan trust, whatever the contract says.
Court approval makes a contract stronger. In states like California and New York, a judge can approve a minor's contract. That stops the minor from cancelling it later, and the court can require that part of the earnings be protected.
To protect the teen, ask for these in writing:
The teen is named as the payee, with the adult signing as custodian
Payment goes into a custodial or trust account in the teen's name, not a parent's personal account
A line signed by the parent stating that the earnings belong to the teen and that the parent gives up any claim to them
A lawyer's review for any large deal, including whether court approval is available in your state
Taxes: The Part Everyone Forgets
A child's income is still income. In general:
A minor who earns money from content creation is treated as self-employed for tax purposes, and usually must file a return when net self-employment earnings reach $400 or more.
The income is typically reported under the child's name and Social Security number, even if a parent receives the payment.
Business expenses, like equipment, may be deductible.
Because tax rules for minors and family businesses have several exceptions, a CPA who works with creators is well worth the cost.
What Is Emancipation, and Can It Help?
Emancipation is a court process where a minor, often 16 or older, is legally treated as an adult for many purposes. An emancipated minor can usually control their own earnings, sign contracts, and make financial choices.
It is not easy. A judge usually wants proof that the minor is financially self-supporting, lives independently, and that emancipation is in their best interest. Rules and age limits vary by state, and it can affect things like family support and health coverage. For most families, a written agreement and a protected account are a better first step.
What Can a Minor Do If Their Money Is Being Misused?
Legal remedies for a minor are limited in states without creator laws, but there are still steps to take:
Talk to a trusted adult. A relative, school counselor, coach, or family friend can help start a calm conversation.
Write things down. Keep copies of contracts, payment records, and messages about who received what.
Contact your state labor department. In states with child influencer laws, this office may handle complaints or reporting rules.
Call a legal aid office or an attorney. Many offer a free first consultation, and bar associations run referral lines.
Know the deadlines. In states such as Illinois and Minnesota, adults who appeared as kids can sue after they grow up, but time limits apply.
If you are in immediate danger or being threatened or abused, contact local emergency services or a trusted adult right away. Money problems are important, but safety comes first.
A Checklist for Parents of Young Creators
Find out whether your state has a child influencer or Coogan-style law.
Open a protected account in your child's name, and never mix it with household money.
Track the child's screen time, hours worked, and earnings from each video or deal.
Pay the child's share even where the law is silent. It builds trust and protects you if questions come up later.
Get a written agreement that explains how earnings are split and spent.
Ask your child's permission before posting, and let them say no. Several states give kids the right to ask for deletion later.
Hire a CPA and, for large deals, an attorney.
A Checklist for Teen Creators
Ask who receives your payments and where the money is stored.
Request a simple written plan: how much is saved, how much is spent, and who decides.
Keep your own copies of contracts and payment statements.
Learn the basics of money: saving, taxes, and investing.
Remember that you may have the right to ask for content featuring you to be removed in some states, especially after turning 18.
Do not sign anything without a parent or guardian and consider asking a lawyer for large deals.
Frequently Asked Questions
Do parents legally own a child's earnings?
Historically, yes, in most states, while the child is unemancipated. But a growing list of state laws now sets aside part or all of the money for the child.
Can my parents spend the money in my Coogan account?
No. Coogan and similar trust accounts are blocked until you turn 18 or are emancipated.
Do these laws apply if I post from a different state?
It depends on the law. Some, like Illinois, apply to content performed in the state. If you and your family move or work across states, get legal advice.
Is my YouTube or TikTok income covered?
Often yes, if the child appears in a large share of the paid content or the account is monetized. The exact rules differ by state and platform.
Can I delete videos I appeared in as a kid?
In Illinois and Minnesota, adults who appeared in monetized content as minors can ask for it to be deleted, and in Minnesota kids 13 and older can make that request.
Do I have to pay taxes on what I earn?
Generally yes. Self-employment income of $400 or more usually requires a tax return, even for a minor.
Final Thoughts
The law is catching up to the creator economy. A young creator's earnings used to depend entirely on how generous or careful their parents were. Now, many states say that a child who helps earn money should have a protected share of it.
If you are a parent, treat your child's income as a responsibility, not a bonus. If you are a minor creator, ask questions early, keep records, and do not be afraid to talk with a lawyer or another trusted adult about your rights.
Where to Verify the Law
Illinois: Public Act 103-0556 (Child Labor Law amendments, 820 ILCS 205)
Minnesota: Minnesota Statutes section 181A.13
Virginia: Code of Virginia section 40.1-109.2
California: Family Code sections 6752 and 6753 (Coogan Law), plus the 2024 child influencer bills AB 1880 and SB 764
Your state labor department and a licensed attorney for the most current rules
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