Investor FAQs

Solutions to your frequently asked questions

Select a category below to jump straight to the nature of your question, or browse our full list of frequently asked questions. If you can’t find the answer to your question, contact us by leaving a comment on the homepage.

General

Has COVID-19 affected the terms of the policy?

No, COVID-19 has not impacted the obligation of the insurance company to pay upon proper presentment of a death claim. It has, however, created a time delay in our ability to get a death certificate which we must have in order to present a claim for the death benefits. This is particularly true in New York where most of the government offices which issue the death certificates were closed. This backlog is resolving itself as government offices have reopened.

What is optimization?

A detailed analysis, based on policy documentation and historic payment information, to determine the appropriate/minimum amount to pay the carriers to keep the policy in-force.  This can reduce the amount of premium required to keep a policy in-force and ensure no excessive build-up of cash values in a policy.  In some situations, accumulated cash value or premiums paid in advance might not be recoverable in the event of a death.

What is the value of my units?

The value of units in the Trust fluctuates because of a large number of factors including rising premiums and related financial considerations. Each time we file a 10-Q with the SEC, the value of the units at the end of calendar quarter covered by the 10-Q is stated. For the quarter ending March 31, 2021 the Net Asset Value was stated to be $0.22 per unit. It can go up and down so the best thing to do is check the last 10-Q filed which can be found on this website under the tab called SEC Filings.

Why won’t the Trust help me sell my policies like LPI did?

Selling of positions is not part of what the Trust does and is against SEC regulations for the Trust. In fact, sales are generally not allowed at all unless you are transferring your position to a family member. You can learn more about the limited sales which can occur on the How to Transfer, Sell or Abandon section of this website.

How do I change my contact information?

Please click here and complete the form.

What do I own?

This information can be obtained from the What Do I Own section of the website.

How can I cash in my investment?

Right now, there is no method by which you can cash in your investment. Information regarding how you can otherwise dispose of your investment is located in the How to Transfer, Sell or Abandon section of this website.

How do I find out what I have paid in premiums?

You can determine this for any active (not yet matured) CFH position you hold by going to the NorthStar Investor Portal and looking at the Escrow Details found in the Report tab. Click the “View Historical Data” button to see amounts entered before March 1, 2018.

I invested a long time ago – surely my policy has matured – the insured on my investment has to be in their ‘90s. How can they still be alive? How do you check to see if they are still alive?

You are correct that the vast majority of the insured are in their early to mid ‘90s. They are, however, still alive and may be for several more years. The likelihood of death increases each year. We have a number of sophisticated methods to constantly monitor for deaths across the entire United States. We usually discover a death within 39 days after it occurs. More information regarding this topic can be found in the Trust Portfolio section of this website.

How long is the Trust going to last? When will this be over?

By its terms, the Trust is designed to terminate in 2031. The Trust should end by that time.

How do I contact the Trustee with questions?

The Trustee looks forward to hearing your questions and concerns. You can contact the Trustee via email trustee@lpi-pht.com, telephone (214) 560-5404, or leave a comment or suggestion for the Trustee on the Home page or Contact Us section this website.

How do I contact the Trustee of the Life Partners Creditors’ Trust?

Click here to be taken to the website for the Life Partners Creditors’ Trust.

What process must I go through to challenge an action taken by the PHT Trustee in connection with my investment?

Contact the Trustee’s office and we will try to resolve the issue. Since Mr. Quilling was appointed Trustee, there has not been a single dispute he has not been able to resolve.

I’ve been contacted by third parties who have expressed an interest in purchasing my investment in the PHT. Am I allowed to sell my PHT interest?

You might be able to sell, but it is a lengthy process and can be expensive. To find out more, go to the How to Transfer, Sell or Abandon section of this website. Remember, however, these people are trying to buy your position at a steep discount.

My parents died and had an investment – what do I need to do?

Please send the following documents to NorthStar Client Services in order to process an Ownership Change for your parent’s account:

  1. A certified death certificate for your mother, Jane Doe Investor.
  2. A certified death certificate for your father, John Doe Investor.
  3. Written instructions for re-registration as Executor of Jane Doe and John Doe Investors’ Estate(s), instructing NorthStar how to retitle the account, with current contact information for yourself.
  4. Letters of Appointment for Jane Doe and John Doe Investors’ Estate(s) or Last Will.
  5. A copy of your driver’s license.
  6. An IRS W-9 form. Please go to this IRS link which leads you right to the form. https://www.irs.gov/pub/irs-pdf/fw9.pdf

You are welcome to email the above documents or send them via regular mail to:

trustee@lpi-pht.com

NorthStar Client Services
15130 Badger Ranch Blvd. Unit 402
Woodway, TX 76712

Distributions

Why haven't I received a distribution check?

There could be several reasons you did not receive a check:

  1. The Trust does not have a good address for you.
  2. The amount of your check was less than $10 in which event you will not receive a check until the total owed to you exceeds $10.
  3. You may owe a lien to the Trust in which event any distribution check will be applied against the lien until the lien is paid in full.
  4. Your distribution was paid to your IRA Custodian.

If I cash the check from a distribution to PHT unit and IRA partnership interest holders, and I am a CFH holder, does that mean I give up my investments?

A distribution to holders of PHT units or IRA partnership interests has nothing to do with any CFH position you hold. So long as you pay the premiums you owe with respect to your CFH position you will maintain it.

I hold IRA Partnership units, why didn’t I receive a check?

The most likely reason you did not receive a check is because it was paid to your IRA Custodian. If you cashed out your account and no longer have a custodian then there could be several reasons you did not receive a check:

  1. The Trust does not have a good address for you.
  2. The amount of your check was less than $10 in which event you will not receive a check until the total owed to you exceeds $10.
  3. You may owe a lien to the Trust in which event any distribution check will be applied against the lien until the lien is paid in full.

NIRANs

Why did my principal amount on my NIRAN Note go down? How much will you pay me in 2031?

The principal balance of your NIRAN Note is reduced each time a principal payment is made to you by the Trust. Just like the principal amount of your mortgage or car loan goes down each time you make a payment. If any amount is still owed to you under the NIRAN Note in 2031, the entire amount will be paid to you on December 15 of that year. However, the Trustee expects to pay the entire principal amount of the Note to you well in advance of that date. You can learn more about how a NIRAN Note works in the What Do I Own section of the website.

Billing

Why are my premiums so high?

The vast majority of our insureds are in their early to mid ‘90s. As they continue to grow older, the premiums go up and sometimes very drastically.

Can I pay by wire?

Generally, the Trust does not allow payments by wire. However, we have made some exceptions in the past. If you believe an exception needs to be made for you, please contact NorthStar Client Services via email phtclientservices@northstarlife.com or phone (800) 476-5545.

How can I predict the future premiums on my Continuing Fractional Interests?

You can determine this for any active (not yet matured) CFH position you hold by going to the NorthStar Investor Portal and looking at the Premium Obligations found in the Report tab.

What can cause the premiums billed to differ from the estimates?

Sometimes the insurance company makes adjustments to what we have estimated the premiums to be and we do not learn about them until we receive the actual bill from the insurance company.

How and when does the Trust issue premium invoices?

CFH investors receive one Invoice each year for each policy. Detailed information on Invoices is found on the Billing Procedures page. Your billing month was determined when the Trust was formed. There is no change to the specific billing month you already have for each of your CFH positions.

We distribute two invoices to investors:
   1. An initial, first Invoice is sent 60 days before your payment is due.
   2. A second Reminder Invoice is sent 30 days before your payment is due.

What is Paperless Billing?

Paperless Billing is a way for Investors to receive invoices for their premium obligations via email. This may help lessen the problems some Investors experience with lost or misplaced Invoices.

Both electronic and paper versions of pending Invoices are sent to the email and mailing address that an Investor has on file with the Trustee. To update your contact information, login to the Investor Portal or submit your information below

  • This field is for validation purposes and should be left unchanged.

How do I stop receiving paper copies of Invoices via the US Post Office and select email only?

You may change the settings in the Investor Portal website.
1. Log in to the Investor Portal.
2. Click on the Contact Information tab.
3. Click Enable Paperless Billing on the right-hand side
4. You will receive a Paperless Billing confirmation email with a link. IMPORTANT NOTE: You must click on the link you receive to actively register your email address and confirm Paperless Billing.

What does a Paperless Billing email and Invoice look like?

Emails will come from the no_reply@northstarlife.com email address. Please update your Junk email filters to ensure receipt of future communications from no_reply@northstarlife.com.

Emails will contain a PDF copy of your specific invoice(s). You will receive two emails with your Invoice(s). The first email is sent 60 days before your payment is due. The second email is sent 30 days before your payment is due.

Emails also have a link to the PHT Investor Portal website. Once logged in to the Portal you can change filters to view all of your invoices and due dates. This screen in the Portal also lets you know whether your payment has been received.

When are Paperless Billing emails and Invoice(s) sent?

The Trust issues invoices around the 20th of each month and the preparatory work begins a few days earlier. Likewise, email notifications of upcoming invoice(s) are sent around the 20th of the month.

What if I do not want to receive the Invoice email notifications?

At this time, the process is automated for all CFH investors. It might be possible for you to change your settings with your own email server to filter out future communications. Please note that we will continue to provide important information via email regarding the Trust so be careful that your settings are not changed to eliminate letters from the Trustee. Please carefully review your contact information in the Investor Portal website to make sure your email address is correct.

What other improvements are planned for Paperless Billing?

We are working to accept premium payments electronically through the Investor Portal.

We are also working on an automated process that will filter out investors who receive more than five (5) invoices in a single month. It is our plan to be able to send Investors who fall in this category with a single notification email that includes a link to the Investor Portal website and an Invoice overview screen.

Please be patient while we develop and implement these new features. We will communicate the release of these changes to investors with clear explanations on how to use them. In the meantime, if you have any questions do not hesitate to reach out to phtclientservices@northstarlife.com.

IRAs

How do I withdraw money from my IRA?

The Trust has no involvement or say in that process. That is strictly between you and your custodian and you need to direct your question to your custodian. You should know, however, that there are potential tax issues related to doing so.

My IRA Custodian says my units are worth $xx – how do I get that cash?

The Trust has no involvement or say in that process. That is strictly between you and your custodian and you need to direct your question to your custodian. We believe, however, that they are using the NAV or the value stated in the last filed 10-K. You should know, however, that there are potential tax issues related to doing so.

Why isn’t my CFH interest still in my IRA account?

IRS regulations prohibit interests in an insurance policy being held in an IRA. When the Bankruptcy Plan of Reorganization was approved and the Trust was created, any investor who held an interest in a policy in their IRA, and wished to continue to hold their CFH position, was required to move it out of their IRA. If you still have an interest (CFH position) in a policy, you hold it individually and not in your IRA.

Trust Documents

How can I review a copy of the bankruptcy plan?

Please click here to view a copy of the bankruptcy plan and here to view a copy of the confirmation order.

How can I review a copy of the trust agreement?

Please click here to view a copy of the trust agreement.