LIFE PARTNERS POSITION HOLDER TRUST
Home Page Last Updated: September 15, 2017
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.
This week the Position Holder Trust and the IRA Partnership distributed tax documents for the 2016 tax year. These documents cover the time period from December 9, 2016 (the Effective Date of the Plan) to December 31, 2016. Neither the Position Holder Trust nor the IRA Partnership had taxable income in 2016.
We cannot provide you with tax, financial, or legal advice. For a more detailed discussion of the Plan’s tax consequences, you should refer to Article XXVI of the Disclosure Statement, dated June 22, 2016, which is available on the Plan Documents page. We encourage you to review the tax documents you received and the Disclosure Statement with your tax advisor.
Position Holder Trust
The Position Holder Trust issued grantor trust statements. These statements show the investor’s share of the Trust’s income and deductible expenses. Most of the statements will simply state “No taxable income” as the Trust had no taxable income and the investor’s share of the Trust’s deductible expenses was less than $1. Investors with larger shares in the Trust will receive statements identifying deductible expenses.
The IRA Partnership issued K-1s to its members. The K-1 shows the investor’s share of the Partnership’s income and deductible expenses. There are two areas of the K-1 that require some explanation.
The percentage interest in the IRA Partnership shown in Section J is calculated by dividing the total number of units that the investor (or its IRA) owns in the Partnership by the total number of outstanding Partnership Units.
The amount of capital shown in Section L is the value of the investor’s share (based on the percentage interest shown in Section J) of the assets that the Partnership contributed to the Position Holder Trust. The change reflects the gain or loss in value from December 9, 2016 to December 31, 2016. Section L does NOT reflect the investor’s tax basis or the amount that the investor invested in LPI.
Investors whose IRA Partnership units are held in their IRAs should send a copy of the K-1 to their IRA Custodians. We are preparing a data feed for all of the Custodians as well.
The PHT is sending account statements to all investors on August 31, 2017. If you have an e-mail address on file, you should receive your account statement by e-mail on August 31. If you do not have an e-mail address on file, you should receive your statement by regular mail in a few days.
The account statements show the investors’ various holdings by category and include a statement of the escrow amounts on account for speciﬁc continuing fractional positions. We ask that you carefully review your account statement when you receive it conﬁrm that it is correct. If you have any questions about your account statement, please contact customer service at Magna. If, you disagree with the account statement, please file your dispute with Magna, in writing, as quickly as possible.
INVESTOR PORTAL (CFH PORTAL)
The Investor Portal will be live on August 31, 2017. On it, you can download a variety of reports about your investments, including copies of statements and invoices. You can access the portal clicking on the link on the CFH Portal page of this website. We have included your personalized log-in information (user name and password) on your account statement.
PHT TRUSTEE POSTS PODCAST
The PHT Trustee has posted a podcast on the Investor Relations page. In it, the Trustee provided a report on the maturities in the portfolio so far; and discussed topics of interest to investors such as, the status of the investor portal, the anticipated timing of distributions, the PHT’s recent registration as a public company and valuation of interests. and limitations on the sale of positions; and answered questions presented by investors.
The Trustee has decided to use podcasts instead of live webinars. There were numerous complaints by investors who were unable to register for the webinars due to the limitations of the webinar service. Moreover, the sheer size of the audience made it impossible for investors to participate.
DISTRIBUTIONS TO CONTINUING FRACTIONAL HOLDERS
As of July 27, 2017, the PHT was up to date on distributions to the Continuing Fractional Holders. The PHT has collected the policy proceeds on 32 post-effective maturities. It has distributed all of those proceeds in accordance with the Plan. These policies are listed on the Maturities page.
The policy proceeds totaled about $43 million of which $17.5 million was paid to the CFHs. The remaining funds were paid to the PHT, the NIRAN collateral account and class counsel in accordance with the Plan and the Court’s orders. In addition, the PHT returned approximately $584,000 in escrowed premiums to the CFHs. Please note that these numbers include money which is owed to investors on hold (either due to litigation or to the failure to provide a W-9). The PHT will continue to hold these funds until the conditions requiring the hold are removed.
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 before November 1, 2016, you do not need to send another form.
Address: P.O. Box 23226
Waco, TX 76702
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