ABSTRACT
When a trust is created, its terms become binding on the subsequent actions of the trustees in relation to the trust property. That trust, once created, remains set in stone, unless there is some provision in the trust which permits an alteration in the manner of its exercise.1 However, there may be occasions when it becomes advantageous to the parties to alter the terms of the trust. For example, suppose that the tax treatment of a particular trust structure was changed by legislation, so rendering the structure originally selected by the settlor less appropriate than it had seemed. In such circumstances the beneficiaries and the trustees would consider it advantageous to vary the terms of the trust to reflect this change in the law. A well-drafted trust would permit variations to accommodate exactly this form of alteration.
