Q: What is the best way to gift CDs for grandchildren in NM?

A: Hire a NM attorney to construct those gifts. They involve many different laws and may require a trust or a gift to minor act, etc. The expense required may not justify this.

A: You're doing something incredibly thoughtful, and it’s smart that you’re thinking about both the gift limit and flexibility for the future. In New Mexico, the federal gift tax exclusion is $18,000 per recipient for 2024, so your $15,000 gifts fall safely under that limit—you won’t need to file a gift tax return. Since the funds are in CDs and your grandchildren are minors, you’ll need to decide whether to hold the accounts in a custodial format or in a trust.

One of the most straightforward options is setting up a **Uniform Transfers to Minors Act (UTMA)** account for each grandchild. This lets you gift the CDs in their names, but a custodian (which can be you or another trusted adult) manages the funds until they turn 21 in New Mexico. This keeps the funds legally theirs, avoids probate, and still gives you oversight while they’re minors.

If you want more control over how or when the money is used—say, beyond age 21 or restricted to specific purposes—you might consider setting up a simple revocable trust with terms you define. But if you're looking for simplicity, a UTMA account with the CDs titled under the custodian’s name for the benefit of each grandchild will likely meet your goals. You’re clearly putting a lot of care into this gift, and it’ll be something they remember and appreciate long after the money is used.