If I gift $10,000 of a stock to a grandchild, will it pass at present value... and will I be able to avoid paying capitail gains as I would if I cashed the stock to give cash?Would the grandchild's tax basis at a later date be this present amount?

When stock is passed to a grand-child (or any else) as a gift, it retains the same basis as the original owner.

The only time the value steps up to current FMV is if the stock is received as an inheritance.