Welcome to the Life Partners Position Holder Trust’s website.  This website was established to provide Life Partners investors with information regarding the status of the PHT and their investments.  If you have any difficulty viewing the entire page, please maximize your view on your computer so you can see the blue button bars at the left side of the screen.  You can use these button bars to move between the pages of this website.

Please note there have been recent updates to the FAQs page.  Please consult these before contacting either Magna Servicing or the Trustee as your question may be answered there.


Notice of Hearing on Trustee's Motion to Modify Third Amended Plan:  NOTE: a hearing will be held on April 6, 2017 at
​2:00 p.m. CST at the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division, 501 W. Tenth Street, Courtroom 204, Fort Worth, Texas  76102.
​  A copy of the Notice of Hearing may be accessed here [Docket #3948]

On March 22, 2017, the PHT Trustee and the Creditors’ Trustee jointly filed a motion to modify the Third Amended Plan of Reorganization. By their motion, the Trustees have proposed several changes to the Plan designed to improve the operation of the Trusts for the benefit of the investors. The proposed changes are:

  •  Requiring proposed distribution recipients to provide properly executed IRS Forms W-9 or W-8BEN to the Trustees, and allowing said Trustee to abstain from making distributions to the proposed recipient until said Trustee receives such IRS Form. If the investor whose distribution is held does not provide the appropriate tax forms within one year, then he or she will not be entitled to receive that distribution. Currently, the Plan requires the Trustees to make distributions but to make tax withholdings if they do not have the appropriate tax forms on file. This creates additional tax reporting and payment obligations to the Trusts.

  • Modifying the premium call procedure to increase the PHT Trustee’s flexibility as to their timing. The current system set forth in the Plan is cumbersome and confusing.  It requires that the PHT Trustee make premium calls only once per year, per policy, and only in June or December.  As a result, the PHT Trustee is required to bill for premiums well in advance of need.  Further, the current system concentrates premium payments into two large payments, imposing an unnecessary burden on the Continuing Fractional Holders’ cash flows. Accordingly, the PHT Trustee has requested permission to bill each policy one time per year, but on a schedule that he devises. The current plan is to divide the policies into twelve groups so that only a limited number of policies are billed in any given month.

  • Waiving the 20% penalty for payment defaults on premiums billed in December 2016 and due on February 27, 2017. The Plan currently provides that a Continuing Fractional Holder who fails to pay a premium call is deemed to have contributed that position to the PHT at a 20% discount. The PHT Trustee has requested the Court’s permission to waive the discount for defaults associated with the premiums billed in December 2016. Please note that this waiver would apply only to premiums billed in December 2016. The failure to pay any future premium call will result in the deemed contribution of the position at a discount.

  • Allowing a Holder of an Allowed Claim who made or was deemed to have made a Continuing Holder Election (Cash Option 1 or IRA Option 4) a one-time, limited opportunity to change its election to the Position Holder Election (Option 2), provided that such election is made in writing to the PHT Trustee, on or before April 24, 2017.  The change would be effective as of December 9, 2016, the Plan’s Effective Date.  Accordingly, if you elect to change a particular Position to Option 2, and you made premium payments on that Position between January 1, 2017 and February 27, 2017; that remittance will be refunded to you.

  • Imposing a deadline for the completion of IRA Option 4 conversions. In order to retain the Option 4 election, the investor must deliver a request to distribute the position to his or her IRA custodian by April 14, 2017. The IRA custodians are, in turn, required to honor the request (upon filing of the appropriate forms and payment of any required fees), within five business days.  If the PHT Trustee does not receive notice that the required distribution has occurred by April 24, 2017, the election shall be deemed to be void and the investor deemed to have elected IRA Option 2 (the pool election), which is the default IRA election.

A copy of the motion and proposed order are available [Docket #3944]. In addition, the Trustees will cause the motion and notice of any hearing to be served as required by the Rules of Bankruptcy Procedure.



To date the PHT has distributed over $105 million in Maturity Funds and $23 million in Maturity Funds Loans and accrued interest.  We are in the process of reconciling accounts to distribute the remaining $20 million in Maturity Funds and approximately $4 million in Maturity Funds Loans and Interest.  The remaining distributions were held up due to the following:

  • You sold a claim during the course of the bankruptcy:  We are in the process of reconciling old account information and entering new account information;
  • You requested an account change:  Due to the bankruptcy process Life Partners had to stop performing account changes, so we are in the process of reconciling old account information and entering new account information. In some cases, we are waiting for probate orders or divorce decrees to finalize account changes; and
  • You are involved in litigation with the Creditors Trust:  Under the Plan, the PHT is required to hold any distribution payable on claims held by persons subject to suit. To discuss this issue, please contact Dennis Roossien, the lawyer for the Creditors Trust.  He may be reached at 214-855-7500.

As we complete the reconciliation process with respect to distributions we will remit checks.  We anticipate that all but a small group (litigation and accounts transferring to multiple people) will be completed by February 7, 2017.  If your maturity occurred on a position held in your IRA account, the check will be mailed to your custodian.

In addition, we are still collecting death benefits on life insurance policies that matured prior to the Effective Date. Those funds will be distributed as soon as reasonably practicable after receipt.


The Plan was effective on December 9, 2016.  At that time, the PHT was formed and Vida Capital Inc. through its subsidiary, Magna Servicing LLC (“Magna”), became the Servicer.  The Plan imposed a number of deadlines that Magna and the PHT had to meet before the end of 2016.  As required by the Plan, the PHT distributed about $128 million in maturities and maturity loan repayments.  In addition, and as also required by the Plan, we issued thousands of invoices for the premiums necessary to maintain the approximately 3,400 policies that we are holding.  All of this was completed in the three weeks between the effective date, December 9, and the end of the year.

At the same time, we have been working on the post-effective reconciliation process required by the Plan as well as transferring the servicing to the new servicer and beginning the process of transferring the ownership and beneficiary status of the policies.  The Plan provides for a Post-Effective Date Reconciliation process that is due to continue for 135 days until April 24, 2017.  In addition to collecting and reconciling the Catch-Up and PPDA payments and completing numerous other tasks required by the Plan, the process includes sorting, organizing and reconciling a great deal of data into new systems that support the reorganized structure.  We are currently on schedule to meet April 24, 2017 deadline, and ask for your support while we work through this demanding process.  Thank you in advance for your patience.  For your convenience, we will be posting FAQ’s as we go along.   You can also contact the Customer Service Department of Magna Servicing, LLC, by phone at 1-800-368-5569 or by email at custsrv@magnaservicing.com if you have any questions or need further information.  Should you have a specific research request, email is the preferred form of communication and will yield the quickest response.


On December 30, 2016, the PHT sent out two sets of invoices to Continuing Fractional Holders relating to policies in which they hold an interest.

  • Invoices for annual premiums for policies with an annual premium due date between May and October 2017
  • Invoices for annual premiums for policies with an annual premium due date between January and April 2017.  This is a one-time invoice for the period between the end of the bankruptcy and the first billing cycle under the Plan.

Payments for both invoices are due in sixty days.  Investors who do not pay the invoice within thirty days will receive a reminder​.


 Magna Servicing
                     Address:  204 Woodhew Dr.
        Waco, Texas  76712 
          Phone: 800-368-5569

                 Customer Service Email: custsrv@magnaservicing.com
                 Premium Billing Email: premiums@magnaservicing.com
                 Policy Services Email: policyservices@magnaservicing.com

Billing under the Plan

The bankruptcy and the Plan of Reorganization changed many things about the manner in which Life Partners (and now the Position Holder Trust) conduct business.  One of the more significant changes for Continuing Position Holders is billing for premium calls.  The PHT will handle billing very differently than the how LPI handled billing in the past.

The Plan requires that the PHT follow very specific procedures in billing premium calls.  Under the Plan, the PHT must bill holders of a policy when the total cash value and total amount on escrow for the policy are insufficient to pay premiums for the next year.  The PHT can only bill a policy one time a year, at least 120 days before the premium due date and only in June or December.

In practical terms this means that the PHT will bill all policies (except those with sufficient cash value) every year on the following schedule:

December Cycle:      Policies with annual premium due dates in May through October of the following year. Thus,
                                    in December 2016, the PHT billed for these premiums due:

  • May Policies: May 2017 through April 2018
  • June Polices: June 2017 through May 2018
  • July Policies: July 2017 through June 2018
  • August Policies: August 2017 through July 2018
  • September Policies: September 2017 through August 2018
  • October Policies: October 2017 through September 2018


June Cycle:               Policies with annual premium due dates in November and December of the current year and
                                  January through April of the following year.  Thus, in June 2017, the PHT will bill for the following
                                  premiums due:

  • November Policies: November 2017 through October 2018
  • December Policies: December 2017 through November 2018
  • January Policies: January 2018 through December 2018
  • February Policies: February 2018 through January 2019
  • March Policies: March 2018 through April 2019
  • April Policies: April 2018 through March 2019

Please note that the PHT must send invoices to all holders in a given policy even if that holder has an sufficient amount in escrow to pay his or her share of the premium call.

Escrow Balances under the Plan

Because the Plan requires a different method of billing than LPI used previously, the PHT must handle escrow balances differently than LPI had in the past.  In the past, LPI had billed for premium payments as they were made.  When a payment needed to be made, LPI determined whether a position holder had sufficient money in escrow to pay its share of the payment.  If so, LPI would use the escrowed money to pay the position holder’s share of the premium and reduce the escrow balance.  If there was not enough money on escrow, LPI would bill for the holder for its share of the premiums.

The PHT, on the other hand, bills holders for premiums for a policy once a year in either June or December.  At that time, the PHT collects money from the holders to pay premiums for the following year.  Because of the billing schedule required by the Plan, the PHT is billing for premiums related to a policy renewal that may not occur for many months.  For example, in December 2016, the PHT billed for annual premiums for policies with a premium renewal date in October 2017.  The premiums related to those policies will be paid from October 2017 through September 2018.

Although it is required to collect premiums annually, the PHT does not pay premiums to the insurance company just once a year.  For most policies, the PHT pays premiums to the insurance company every three months.  This is the standard practice in the life settlement industry allowing more control over the payment of premiums and limits the loss of value that occurs when an insured dies.  If an insured dies right after a premium is paid, the insurance company keeps the premium.  Paying premiums quarterly reduces these losses to no more than three months’ worth of premiums.

Because the PHT is required to hold and use money paid by holders over the course of several months, not all of the money that is shown in a holder’s escrow can be used to pay future premiums.  For example, in December 2016, the PHT billed for annual premiums for policies with an October anniversary.  This bill is for premiums to be paid from October 2017 through September 2018.  To keep the policy in force until October 2017, the PHT must pay premiums on January 2017, April 2017 and July 2017.  The money in a holder’s escrow account in December 2016 when the bill was sent is needed to pay these premiums.  As such the escrow balance an investor sees at any given time represents both unencumbered funds and funds already assigned a purpose but not yet sent to the insurance company.  The attached timeline may be helpful.

Future invoices (beginning with the June 2017 cycle) will include an escrow reconciliation for each position.  This reconciliation will identify the amount in escrow for that position in excess of the current premium needs.  Because of the on-going post-effective date reconciliation process which will last until April, the PHT was unable to include that information on the current invoice.