LIFE PARTNERS POSITION HOLDER TRUST
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.
We have significantly revised the Home Page and the FAQs.
PHT TRUSTEE HOLDS SECOND WEBINAR
On April 28, 2017, the PHT Trustee held his second webinar for investors. During the webinar, the Trustee provided a report on the maturities in the portfolio so far; discussed topics of interest to investors such as recent order modifying the Plan, the status of the investor portal, the anticipated timing of distributions and limitations on the sale of positions; and answered questions presented by investors. The webinar lasted about an hour. For investors who were unable to attend the webinar, a recording is available on the Investor Relations page.
The PHT Trustee plans on holding webinars quarterly.
ORDER GRANTING REQUEST TO MODIFY THIRD AMENDED PLAN
On April 6, 2017, the Court heard the joint motion of the PHT Trustee and the Creditors’ Trustee to modify the Third Amended Plan of Reorganization. After the motion was filed, some investors objected to the motion and other parties express concerns regarding some of the Trustees' proposals. After significant negotiations, the Trustees and the objecting investors reached an agreement to slightly change the proposed modifications to the Plan. After hearing evidence regarding the modified proposals and considering the statements of the investors and parties attending the hearing, the Court granted the Trustees' motion. A copy of the entered order may be accessed with this link or on the Plan Documents Page. The Court ordered that the Plan be modified as follows:
• The Plan allows the Trustees to withhold cash distributions to those who have not provided properly executed IRS Forms W-9 or W-8BEN to the Trustee. If the investor whose distribution is held does not provide appropriate tax forms within one year, then he or she will not be entitled to receive that distribution. The Trustees are required to request tax forms from creditors from whom they have not received a W-9 or W-8BEN after November 2016. In order to minimize the burden on the investors, the Trustees are allowed to rely on tax forms received by either Trustee. The PHT will be sending requests out in the near future. In the meantime, we have posted copies of the W-9 and W-8BEN forms (as well as a link to the IRS's website) on the Forms page.
• The schedule for sending premium bills is modified to eliminate the requirement that the PHT bill only in June and December. Instead, the PHT Trustee is 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.
• The PHT Trustee is to accept as timely any payment for the December premium invoices in his possession as of the close of business April 6, 2017.
• The Plan 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. This penalty is waived for (i) payment defaults on premiums bill in December 2016 and (ii) the next premium bill for each position. The failure to pay any future premium call will result in the deemed contribution of the position at the discount.
• IRA investors who chose IRA Option 4 (Conversion) must instruct their IRA custodians to distribute their position by May 5, 2017. In order to effectuate IRA Option 4 elections, the IRA custodians must notify the PHT that the IRA has distributed the subject position to the IRA owner by May 15, 2017. IRA investors must request that their IRA custodians distribute the position by May 5, 2017 and the IRA custodians are, in turn, required to honor the request (upon filing of the appropriate forms and payment of any required fees) by May 15, 2017. If the PHT Trustee does not receive the requisite notice of distribution by May 15, 2017, the IRA Option 4 (Conversion) election shall be deemed to be void and the investor deemed to have elected IRA Option 2 (Pool), which is the default IRA election. The PHT Trustee may only extend the May 15, 2017 notice deadline if the IRA owner requested that his or her IRA Custodian to make the requisite distribution by May 5, 2017.
The Court's order does not allow Continuing Holders, or any other investors, to change their elections. Accordingly, the PHT Trustee cannot do anything with any of the notices provided by Continuing Holders in anticipation of the hearing. Continuing Holders who wish to convert to the pool can now do so by failing to pay the next premium bill they receive. If they do so, their positions will convert into pool interest, without discount or penalty. Please note that this special 20% penalty forgiveness is applicable to the next round of invoices for each policy. After the next round of premium calls, the penalty will apply to all subsequent premium payment defaults.
ADDRESS FOR NOTICES OF DISTRIBUTION
Pursuant to the Court's order modifying the Plan, IRA custodians must send notices of distribution to the PHT Trustee at "such . . . address as the Position Holder Trustee shall designate in writing and post on his website." Order at ¶ 6(b). The PHT Trustee hereby designates the following as the address to which notices of distribution are to be sent:
Magna Servicing, LLC
P.O. Box 23226
Waco, TX 76702
ADDRESS FOR FORMS W-9 AND W-8BEN
The PHT Trustee is requesting that all investors send IRS Form W-9 or IRS Form W-8BEN to the PHT at the following address:
Magna Servicing, LLC
P.O. Box 23226
Waco, TX 76702
Please do not send these forms to the PHT Trustee's counsel (Michael Napoli and/or Aaron Kaufman) or the Creditors' Trust Trustee's counsel (Jay Ong).
If you sent a Form W-9 or W-8BEN to the PHT after November 1, 2016, you do not need to send another form.
To date the PHT has distributed in excess of $156 million to investors since the Plan became effective in December 2016.
|Maturity Funds Facility (MFF)||$23,220,322|
(Purchase Money/Unused Billings)
The PHT will distribute the proceeds of post-effective maturities to the Continuing Fractional Holders in due course. Please note that due to the timetables set forth in the Plan it will be about eight months from the date the insured dies until funds can be distributed. It takes about three months to obtain the death certificate and receive the proceeds from the insurer and the Plan requires that proceeds be held for about five months after receipt from the insurer. This issue is discussed in greater detail in the Frequently Asked Questions.
Address: P.O. Box 23226
Waco, TX 76702
Customer Service Email: email@example.com
Premium Billing Email: firstname.lastname@example.org
Policy Services Email: email@example.com