2017 Form 1099s delivered this week

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The Position Holder Trust is in the process of delivering Form 1099s for 2017. These forms reflect payments by either Life Partners, Inc. or the Position Holder Trust during 2017. As with the Form 1099s sent for 2016, we report the gross amount paid only. We cannot determine how much of the payment is taxable to the recipient. The amount of each payment that is taxable varies among taxpayers and depends upon information that is not available to the Position Holder Trust.

Life Partners, Inc.

· Form 1099-MISC – This form reports income related to pre-effective maturities (including MFF Loan repayments). We sent checks for these payments in 2017 to certain investors, including checks issued in 2016 that were cancelled and reissued.

· Form 1099-INT – This form reports interest paid on the MFF loan. We sent checks for these payments in 2017 to certain investors, including checks issued in 2016 that were cancelled and reissued.

Please note that, in some cases, Form 1099s from Life Partners, Inc. were erroneously sent directly to investors in IRAs. We have identified these investors and are in the process of preparing (i) corrected Form 1099s that will reflect zero dollars paid to the investors and (ii) Form 1099s that will reflect money paid to the IRAs. The corrected Form 1099s should go out later this week.

Life Partners Position Holder Trust

· Form 1099-INT – This form reports interest paid on the New IRA Notes. If the notes are held by an IRA, we will address the Form 1099 to the IRA custodian. If the New IRA Notes are held outside of IRAs, we will send the Form 1099-INT directly to the corresponding investor.

· Form 1099-R – This form reports maturity payments made to Continuing Fractional Holders in 2017 (including investors who successfully completed the Option 4 conversion).

We report only the gross amount paid to the Continuing Fractional Holders. The Position Holder Trust has not attempted and will not attempt to determine any Continuing Fractional Holder’s taxable income resulting from a maturity. It is the responsibility of the Continuing Fractional Holder to keep track of whatever costs it incurred in purchasing and maintaining its position as well as the effect of the Plan and the bankruptcy on its positions.

If you have any questions regarding any tax forms that you receive from either Life Partners, Inc. or the Life Partners Position Holder Trust, please contact the Trustee at (214) 698-7893 or at trustee@lpi-pht.com. Please do not contact Magna Servicing or the Trustee’s counsel directly.