# Living Will

*Regulation & Compliance — Finicade finance glossary*

A living will is a large bank's own plan for how it could be wound down in bankruptcy without taxpayer support or systemic disruption. Regulators review them and can demand structural simplification if a plan isn't credible — which has forced genuine changes to legal entity structures. The premise is that resolvability must be engineered in advance, not improvised over a weekend.

**Also known as:** resolution plan, recovery and resolution plan

**Related terms:** [Dodd-Frank Act](https://finicade.com/glossary/dodd-frank-act), [Systemic Risk](https://finicade.com/glossary/systemic-risk), [Ring-Fencing](https://finicade.com/glossary/ring-fencing), [Bankruptcy](https://finicade.com/glossary/bankruptcy), [Basel Rules](https://finicade.com/glossary/basel-rules)

Source: https://finicade.com/glossary/living-will