§ 18400 Surviving Entity Gift Continuity

Corporations Code·California

AI SummaryVerified

This law says that if a will or similar document leaves something to a company that later disappears because it merges, the gift automatically goes to the company that survives the merger.

Key Takeaways

•Gifts in wills to a company that disappears in a merger go to the surviving company.
•Any trust rules that would have applied to the disappearing company also apply to the surviving company.
•The rule works automatically after the merger, without needing a new will.

Example

Grandma writes in her will, "Give $10,000 to TechCo." After Grandma dies, TechCo merges into MegaTech and no longer exists on its own.

Because of this law, the $10,000 will be paid to MegaTech, the company that survived the merger, just as if Grandma had named MegaTech in her will.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 18400 Surviving Entity Gift Continuity

A bequest, devise, gift, grant, or promise contained in a will or other instrument of donation, subscription, or conveyance that is made to a disappearing entity and that takes effect or remains payable after the merger inures to the benefit of the surviving entity. A trust obligation that would govern property if transferred to the disappearing entity applies to property that is instead transferred to the surviving entity under this section. (Added by Stats. 2005, Ch. 116, Sec. 5. Effective January 1, 2006.)

Last verified: January 10, 2026

Key Terms

bequest devise gift grant promise disappearing entity surviving entity trust obligation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 18400.

§ 18400 Surviving Entity Gift Continuity

Corporations Code·California

AI SummaryVerified

§ 18400 Surviving Entity Gift Continuity

This law says that if a will or similar document leaves something to a company that later disappears because it merges, the gift automatically goes to the company that survives the merger.

Key Takeaways

•Gifts in wills to a company that disappears in a merger go to the surviving company.
•Any trust rules that would have applied to the disappearing company also apply to the surviving company.
•The rule works automatically after the merger, without needing a new will.

Example

Grandma writes in her will, "Give $10,000 to TechCo." After Grandma dies, TechCo merges into MegaTech and no longer exists on its own.

Because of this law, the $10,000 will be paid to MegaTech, the company that survived the merger, just as if Grandma had named MegaTech in her will.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 18400 Surviving Entity Gift Continuity

Last verified: January 10, 2026

Key Terms

bequest devise gift grant promise disappearing entity surviving entity trust obligation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 18400.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References