In grantor trusts, transactions between the grantor and the trust are disregarded. So at the end of the trust term the grantor can buy back the appreciated assets and substitute cash in the trust vehicle. That cash (assuming a zeroed out GRAT) represents the delta between the conservative IRS assumed rate and the actual appreciation, passes to heirs gift tax free, and with no embedded capital gains basis.

Again, if you are going to throw punches you ought to make really sure you’ve done your own homework.