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LPI Position Holder Trust Newsletter

Inside this issue

The Trustee’s Corner .....1

Upcoming Events ..........1

Action Items .................2

Trust Update ................3-5

Registration as a Public Company ....................... 3

Transfer Restrictions ..... 3

CFH Distributions ........... 4

Special Offer for IRA Investors ........................ 4

A Note from the Creditors’ Trustee .......... 5

Portfolio at Glance .......5

FAQ……………………………..6

How to Contact Us ........7

Upcoming Events

• October 16th

4th Quarter LPI PHT In-vestor Podcast available for download.

• November 13th

November 2017 LPI PHT Newsletter to be pub-lished.

• December 11th

December 2017 LPIPHT Newsletter tobe published.

The Trustee’s Corner

Welcome to the October 2017 issue of the Life Partners Position Holder Trust (PHT) investor newsletter. This issue will provide you with an update on recent developments with the administration of the Trust, but first I’d like to give you some advance guidance on a slight change to the way we intend to communi-cate with you in the coming months.

We’ve received positive feedback on the idea of a monthly newsletter and have also received some excellent suggestions for how to make it more useful to you. One thing we’re trying to do is get information to you faster than a monthly cy-cle allows; and although we’ve been posting updates to www.LPI-PHT.com on a regular basis, we’re currently designing a new website for the PHT that will be more user-friendly.

Once it is launched, that website will become the principal destination for you to obtain frequent updates related to the Trust. We’re even working on some op-tions for how to automate the process of having those updates pushed directly to your email inbox so you don’t have to remember to go check the site your-self. At that point, we plan to use this monthly newsletter as essentially a news digest that recaps highlights from the previous month and shares my thoughts with you about important developments. I’ll keep you posted on our progress with this project.

We’ve also received some nice feedback on the value of our quarterly podcasts that provide you and your advisors with a deeper dive into the status of the portfolio, the timing of distributions and other issues of interest to investors – so we plan to continue those information presentations as well. The next podcast should be available any time after October 16th and you can play the recording directly from our website at your convenience by clicking here.

I hope that you will find the articles in this newsletter to be informative. Thank you for your interest.

Sincerely, LPI Position Holder Trust Eduardo S. Espinosa Trustee

October 2017 Issue

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Action Items

What we need from you?

• Please update your contact information. We are having a number of mails and e-mails returned as undeliverable. You can change your contact information through the investor portal (www.magnaservicing.com) or by contacting Customer Service (custsrv@magnaservicing.com).

• If you have not done so already, log onto the new PHT investor portal (www.magnaservicing.com) with the log-in credentials and password emailed to you this summer and make sure to change your password from the one you were provided to one that you will be able to re-member more easily. If you did not receive the email from Magna to access the investor portal (or have misplaced it), please send a mes-sage to custsrv@magnaservicing.com and they will send it to you again.

• Pay the premiums on the policies you own as reflected in any invoic-es you received. Please do not send a partial payment and please do not delay beyond the 60-day payment window you will be provided. We must receive your payment in full no later than the specified due date or your ownership rights will automatically be transferred to the Pool option.

• If you have received a check from us for a matured investment, please cash it as soon as possible. These checks may become “stale” after 60 days.

• If you did not receive this newsletter directly – or prefer that we use an alternative email address – please contact the servicer (custsrv@magnaservicing.com) to let us know.

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Trust Update

Registration as a Public Company The Trustee has now filed the amended Form 10 with the U.S. Securities and Exchange Commission (SEC), furthering our registration as a public company. The PHT was required to register as a public company because its assets exceed $10 million and there are more than 2,000 investors. Please don’t misunderstand: This does NOT mean that any of the securities issued under the Plan will trade publicly or that the transfer restrictions con-tained in the Plan Documents have been waived. It simply means that the PHT and the IRA Partnership will file annual reports (10-Ks), quarterly financial statements (10-Qs) and other documents with the SEC.

These reports -- particularly the annual reports -- will contain information as to the net worth of the PHT and IRA Partnership, which you or your tax advisor can use to calculate the value of your interests for tax purposes. That should prove to be very useful to you each year. You can find these documents on the PHT’s website and on the SEC’s website (www.SEC.gov) by searching “company filings.”

Transfer Restrictions The Plan does not forbid transfers, but it does make them difficult. The Plan and its supporting documents – the Servicing Agreement, Position Holder Trust Agreement, the IRA Holders Partnership Company Agreement, and the New IRA Note documents – pro-vide very strict limits on the transfer of the securities created by the Plan. These restrictions are required by federal securities and tax laws. In short, the invest-ments held by the investors are securities and can transferred only in accordance with federal and state securities laws -- just like the original LPI investments that the Texas Supreme Court held to be securities. In addition, the PHT’s and IRA Partnership’s exemp-tion from the requirements of the federal Investment Company Act depend in part on maintaining and en-forcing strict limits on the transfer of securities. Simi-larly, the PHT’s tax status depends upon maintaining and enforcing these limits. Selling Plan securities is difficult. The sale must satisfy the following general criteria: (i) it must comply with federal and state securities laws; (ii) it must not sub-ject the PHT or IRA Partnership to additional regulato-ry requirements; and (iii) the transfer must not cause the PHT’s tax status to change. In order for a sale to be completed, the seller (or the buyer on the seller’s behalf) must provide the PHT with an opinion of

counsel. The specific criteria are highly technical and vary depending upon the particular security at issue and the facts of the proposed sale. If you would like to sell your securities, you should retain counsel to assist you. The PHT cannot assist in the sale of Plan securities. We are not allowed to match buyers and sellers; maintain lists of willing buyers and sellers; or post sales. Nor may we provide potential buyers with in-formation as to the insurance policies underlying the securities. There are, however, certain transfers that can be made relatively easily. For example, the Plan general-ly allows transfers where the investor retains owner-ship or control over the investment, such as distribu-tions from IRAs, rollovers to different IRAs or contri-bution of the investment to a family trust or family partnership. In addition, the Plan securities can be transferred in cases of the death or divorce of the investor. To make estate planning easier, the PHT is developing beneficiary forms that will enable an in-vestor to designate the person or persons they want to receive his or her securities upon death.

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Trust Update

CFH Distributions Proceeds from policy maturities are now being dis-tributed to Continuing Fractional Holders (CFH) begin-ning on the second Monday of the month following the date that the PHT receives payment from the insurance company. We will continue to post maturi-ties on the Trustee website, noting whether the pro-ceeds have been received and distributed. In addi-tion, Magna’s new investor portal provides infor-mation as to maturities that are due to individual CFH investors.

Special Offer for IRA Investors STRATA Trust Company has come to us with a special offer for those of you who are IRA investors. STRATA will waive its first-year account set-up fee and first-year annual account fee for LPI investors who have IRAs with another custodian. To qualify, you must open a new IRA with STRATA and initiate a direct transfer of your LPI investment holdings (in-kind) from your current custodian prior to December 31, 2017. You can find a link to the details of this offer on the PHT website. With offices in Austin and Waco, Texas, STRATA is a national custodian for alternative assets and non-exchange traded investments in self-directed IRAs. Founded in 2008, STRATA now serves more than 33,000 individuals nationwide with over $1.8 billion in assets under custody. As a subsidiary of Horizon Bank, SSB, STRATA is a Texas-chartered trust company regu-lated by the Texas Department of Banking. This infor-mation and the special offer was prepared by STRATA without input from or review by the PHT Trustee. The PHT Trustee is passing this offer along because it ap-pears to be of interest to the IRA investors as a whole. You should not view the PHT’s publication of the offer as an endorsement or recommendation of STRATA or its offer.

For more information: STRATA Trust Company 7901 Woodway Drive, Suite 200 Waco, TX 76712 Phone: 1-800-928-9394 Email: Info@StrataTrust.com Website: www.StrataTrust.com

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Trust Update

Portfolio at Glance September was a “good” month for maturities. We expected about $11 million in maturities but have already identified $18.4 million, instead. Neverthe-less, 2017 maturities remain about $23 million below the median projection for 2017. You can see from the “Actual” trend-line above that it moved towards the median during September.

Also in September, we collected $12.7 million in death benefits. Those proceeds have been distribut-ed to the Continuing Fractional Holders and the PHT. These $12.7 million relate to deaths that were identi-fied between May 2017 and August 2017. On aver-age, we are collecting on claims filed within 63 days of learning of the maturity and 36 days of obtaining a death certificate.

A note from the Creditors’ Trustee If you are a beneficiary of the Position Holder Trust (including but not limited to if you are a Continuing Position Holder), and you have recently received a statement from the Creditors’ Trustee referring to a beneficial interest that you hold in the Creditors’ Trust, please take note that:

• Under the Joint Plan confirmed by the Bankrupt-

cy Court, even if you did not elect to receive a

Creditors’ Trust interest, it is possible that you

received an interest in the Creditors’ Trust (an

“Additional Allowed Claim”) that corresponds to

0.5% of your allowed investment claim(s).

• Any such interest in the Creditors’ Trust is in

addition to, and not in lieu of, any beneficial

interest you may hold in the Position Holder

Trust, or as a Continuing Position Holder.

• Therefore, if you believe that you are a benefi-

ciary of the Position Holder Trust and did not

elect to receive any interest in the Creditors’

Trust, the fact that you may hold an Additional

Allowed Claim and beneficial interest in the Cred-

itors’ Trust does not necessarily contradict that

understanding.

• The Creditors’ Trust and Position Holder Trust are

wholly separate trusts. Beneficial interests in

these two trusts are administered separate-

ly. Thus, any percentage, amount or treatment

of any beneficial interest you may have in the

Creditors’ Trust do not relate in any way to the

percentage, amount or treatment of any benefi-

cial interest that you may hold in the Position

Holder Trust, other than to the extent that Addi-

tional Allowed Claims are calculated as a small

percentage of an investor’s allowed investment

claim(s).

• If you have any questions regarding this state-

ment or your potential beneficial interest in the

Creditors’ Trust please call 214-740-5135 or e-

mail LPCreditorsTrust@munsch.com. Please do

not contact the PHT Trustee or Magna Servicing

as they cannot answer your questions regarding

the Creditors’ Trust.

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Q: I received a letter that says I “abandoned” my poli-cy(ies). What does this mean and where can I receive more information regarding this letter that is specific to my account? A: Prior to its bankruptcy, Life Partners advanced in-surance premiums on behalf of investors. During the bankruptcy, these premiums were called “PPDA Premi-ums.” The Plan required that investors repay all of the PPDA Premiums by December 1, 2016. If an investor failed to pay the PPDA Premium owed on a particular position, the Plan deemed that position to have been abandoned by the investor and returned to Life Part-ners. If you believe that your positions were improp-erly abandoned, you should contact Customer Service. Q: I just received a new account statement and some of the information on here doesn’t match my own records regarding my ownership interests. What do I do? A: You should contact Customer Service. Please be as specific as possible so that we can better assist you.

Q: Why am I being billed for another premium when I was just billed in December? I thought you were only going to bill me once a year?

A: The premiums billed in December were for 2017. The premiums that were billed in August 2017 -- and will be billed over the next few months -- are for 2018.

In December of last year, the PHT sent out two sets of invoices: (1) The regular December invoices covering policies with the next premium due in May 2017 through October 2017; and (2) A one-time set of in-voices for policies with the next premium due in Janu-ary 2017 through April 2017. We had to send out the one-time set because the Effective Date of the Plan was after June 2016, the date these invoices would normally have been sent. It is now about 120 days un-til January 2018 and the premiums are coming due again.

Frequently Asked Questions

Here are brief answers to some of the frequently asked questions (FAQs) we’ve received in the past month:

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Questions and Updates

We routinely post updates

and new information on

www.LPI-PHT.com. Moreo-

ver, prior communications

including copies of this

newsletter and the Trus-

tee’s prior webinars are

available for download on

the investor communication

tab. We encourage you to

access the website as a pri-

mary reference source.

We’re happy to answer any

additional questions you

may have. Please note that

it’s likely you will receive a

faster response if you con-

tact us by email.

For questions regarding your individual account, please contact:

Magna Servicing

P.O. Box 23226

Waco, TX 76702

Phone: 800-368-5569

Email: custsrv@magnaservicing.com

For questions regarding the administration of the Plan of Reorganization, please contact:

Eduardo Espinosa, LPI PHT Trustee

1717 Main Street, Suite 4200

Dallas, Texas 75201

Phone: 214-698-7893

Email: trustee@lpi-pht.com

How to Contact Us