Living will
1.
A contingency plan of how a significant financial institution could be wound up by its supervisor in an orderly manner in the event of a collapse.
A requirement of the US Dodd-Frank financial reform law applied to financial institutions with total consolidated assets of $50 billion or more and non-bank financial companies supervised by the Federal Reserve.
Similar requirements apply in other jurisdictions, in relation to institutions considered to be significant on the grounds of their size, degree of interconnectedness with other parts of the financial system, or both.
Also known as a Resolution plan.
2.
A set of instructions which specifies what actions are to be taken if an individual becomes unable to act personally due to illness or incapacity.
Also known as an advance decision.
