Trust is flexible such that it can be modified from time to time to suit changing situations and objectives. However, certain limitations are to be considered and observed:

• Irrevocable Living Trust. No changes may be made which would alter the irrevocable nature of the trust; this applies also to an Irrevocable Life Insurance Trust where the insured has designated an irrevocable beneficiary of insurance proceeds.

• Revocable Living Trust. The trustor can change its terms such as the beneficiary designation, how the fund will be invested, manner of disposition or distribution of the fund to the beneficiaries; he may even terminate the trust at any time he so wishes.

• Testamentary Trust. The trustor can change its term anytime during the life of the trustor. The trust becomes operative and the terms of the trust become final only upon his death.

• Retirement/Pension Trust. The trustor (the employer) cannot amend the terms of the trust where such amendment would constitute the diversion of all or a part of the principal and/or income of the fund to purposes other than those specified in the Retirement/Pension Plan.

• Sinking Fund Management, Trust Indenture, Escrow Agency, Collateral Trust and Similar arrangements. Amendments in the terms can be made only upon mutual consent of the trustor and the beneficiary.

In any trust arrangement, however, the trustor and, in some cases the beneficiary, can change the trustee at any time.