text:  It's your original cost basis unless you're kind enough to pass away for them. So if I give them the stock, there's no... There's no step up if you give them... In a sense, for the cap gain, they'll have to pay the tax on the cap gain, but just at their rate or something. Yes, and keep in mind that your minor grandchildren, if they sell the stock with a capital gain, they will pay their parents' capital gain rate first.