Swan Generations enables parents, legal guardians, and other family members to make irrevocable gifts of real Bitcoin to a child.
The Bitcoin is held in a dedicated wallet and stewarded by an administrator (typically a parent or guardian) until the owner reaches a chosen "ascension age” (between 18-25).
Learn more at swanbitcoin.com/generations.
Who can open a Swan Generations wallet?
Swan Generations is available to all Swan clients in the US.
Wallets are opened from personal accounts (entity/company accounts are not eligible). You can open multiple Generations wallets, for example, one per child, grandchild, niece, or nephew.
Opening a Generations wallet also gives you complimentary Swan Private membership, with access to a dedicated Private representative, private events, and exclusive content.
How do I set up a Swan Generations account?
- Log in to your Swan account on the web
- Select Add Swan Generations
- Enter the owner's (child's) information, name the wallet, and choose an ascension age
- Enter your administrator information, review, and sign the agreements
Generations setup is currently web-only. Once the wallet is open, you can fund it from web or mobile.
Who legally owns the Bitcoin?
From the moment a gift is made, the Bitcoin is the legal property of the child (the wallet owner). The administrator manages the wallet and must act solely for the benefit of the owner.
What is the role of the administrator?
The administrator manages the Swan Generations wallet until ascension. The administrator represents that they are the parent, legal guardian, or close family relative of the minor.
What is the ascension age?
The ascension age is the age at which the owner takes control of the wallet. You choose an ascension age between 18 and 25 when you set up the wallet.
What happens at ascension?
When the owner reaches the chosen ascension age, they take control of the wallet.
Swan works with your family to transition the Bitcoin into the owner’s personal Swan account. From there, the owner can choose to continue holding their Bitcoin with Swan or withdraw it to another wallet at any time. Your Swan Private representative can guide you through the transition.
Are gifts revocable?
No. Every contribution is an irrevocable gift to the owner. Once Bitcoin is gifted into a Swan Generations wallet, it cannot be reversed or reclaimed by the donor or administrator.
How do I fund a Generations wallet?
Fund your Generations wallet by withdrawing Bitcoin from your Swan account:
- Go to Withdraw in your Swan account (web or mobile)
- Add your Generations wallet as a withdrawal destination (two-factor authentication is required)
- Initiate a withdrawal: the Bitcoin transfers on-chain into the Generations cold storage wallet
Multiple family members can coordinate gifts into the same wallet, including parents, grandparents, and others. Keep in mind applicable gift tax rules.
What does Swan Generations cost?
The fee is 0.02% (2 basis points) of assets per month per wallet, with a $10/month minimum per wallet, billed monthly from the date the wallet is opened.
Swan Generations clients also receive Swan Private membership with the platform fee waived.
How do taxes work for Bitcoin gifts?
Generally, gifts of Bitcoin carry the original cost basis and holding period to the recipient, similar to other property, which may support tax-optimized generational planning with your advisors.
Be sure to review the current annual gift tax exclusion on the IRS website.
Swan does not provide tax or legal advice. Please consult your professionals and resources.
Does a Generations gift avoid probate?
Because each contribution is a completed, irrevocable gift, the Bitcoin is no longer part of the giver's estate and does not pass through probate. Note this is separate from the beneficiary (Transfer on Death) designation on your own Swan account, which covers only your personal holdings. Learn more about beneficiaries here. As always, consult your estate planning professionals.
Swan does not provide tax or legal advice. Please consult your professionals and resources.
Where is the Bitcoin secured?
All Swan accounts are protected by Swan Guard, our suite of advanced security features and protocols. Swan segregates duties between trading and custody and works with multiple regulated custodians (learn more).
For Swan Generations, the custodian is BitGo Bank & Trust, a qualified custodian operating under United States law, authorized by the Office of the Comptroller of the Currency, and one of the oldest operating Bitcoin custodians. Generations wallets are multi-signature cold storage. Learn more here.
How does this fit with my other Swan accounts?
Swan Generations is an additional Swan account you’ll see in your dashboard.