Life Partners IRA Holder Partnership 10-Q 21 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2017shares
Document and Entity Information [Abstract]
Entity Registrant Name	Life Partners Position Holder Trust
Entity Central Index Key	1,692,144
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	0
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017

BALANCE SHEETS (UNAUDITED)

BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash	$ 8,070,105	$ 23,927,247
Maturity escrow held by third party	5,055,450	6,881,784
Maturities receivable	12,145,715	7,386,420
Premiums receivable, net	0	661,878
Prepaids and other assets	67,342	164,867
Restricted cash and cash equivalents	82,021,846	79,522,890
Life insurance policies	286,155,720	263,579,040
Total assets	393,516,178	382,124,126
Liabilities
Notes Payable	94,067,102	94,010,671
Assumed tax liability	3,323,671	4,102,099
Creditor trust funding	5,000,000	10,000,000
Premium liability	31,126,592	25,776,263
Pre-effective maturity liabilities	15,154,369	38,026,076
Accounts payable	2,920,403	200,072
Assumed liabilities	334,797	5,741,922
Accrued expenses	1,394,557	517,469
Commitments and contingencies (Note 2)
Total liabilities	153,321,491	178,374,572
Net assets	$ 240,194,687	$ 203,749,554

STATEMENT OF OPERATIONS (UNAUDI

STATEMENT OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Income
Change in fair value of life insurance policies	$ 26,170,478	$ 48,847,912
Total income	26,170,478	48,847,912
Expenses
Interest expense	1,805,161	5,422,804
Legal Fees	633,272	3,467,789
Professional Fees	1,420,133	2,779,448
Insurance	375	10,855
Other general and administrative	179,369	721,883
Total expenses	4,038,310	12,402,779
Net increase in net assets resulting from operations	$ 22,132,168	$ 36,445,133

STATEMENT OF CHANGES IN NET ASS

STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED) [Abstract]
Net assets, beginning of period	$ 218,062,519	$ 203,749,554
Net increase in net assets resulting from operations	22,132,168	36,445,133
Net assets, end of period	$ 240,194,687	$ 240,194,687

STATEMENT OF CASH FLOWS (UNAUDI

STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2017
Cash flows from operating activities:
Net increase in net assets resulting from operations	$ 36,445,133
Adjustments to reconcile net increase in net assets to net cash used in operations:
Change in fair value of life insurance policies	(48,847,912)
Change in assets and liabilities:
Maturity escrow held by third party	1,826,334
Prepaids and other assets	97,525
Premiums receivable, net	661,878
Maturities receivable	(870,671)
Assumed tax liability	(778,428)
Pre-effective maturity liabilities	(22,871,707)
Creditor trust funding	(5,000,000)
Premiums payable	5,350,329
Accounts payable	2,720,331
Accrued expenses	933,519
Assumed liabilities	(5,407,125)
Net cash flows used in operating activities	(35,740,794)
Cash flows used in investing activities:
Contributed cash	0
Premiums paid on life insurance policies	(24,599,593)
Proceeds from maturity of life insurance policies	46,982,201
Proceeds from issuance of notes payable	0
Payments on maturity funds facility	0
Net cash flows used in investing activities	22,382,608
Net (decrease) in cash	(13,358,186)
Cash, beginning of period	103,450,137
Cash, end of period	90,091,951
Supplemental cash flow information:
Cash	8,070,105
Restricted cash and cash equivalents	82,021,846
Supplemental cash flow information:
Cash paid for interest	$ 3,403,128

Operations and Significant Acco

Operations and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Operations and Significant Accounting Policies [Abstract]
Operations and Significant Accounting Policies	Note 1 - Operations and Significant Accounting Policies Operations Life Partners Position Holder Trust (the “Trust”) was created on December 9, 2016, pursuant to the Revised Third Amended Joint Plan of Reorganization of Life Partners Holdings, Inc., et al. In connection with its formation and the inception of its activities on December 9, 2016, the Trust issued a total of 1,012,355,948 units of beneficial interest (the “Units”) to the fractional interest holders having claims in the Debtors bankruptcy pursuant to the Plan. Each fractional interest holder received a Unit for each dollar of expected death benefit such holder contributed to the Trust. As of September 30, 2017 and December 31, 2016, there were 10,386 and 12,243 holders of the 1,154,518,519 and 1,012,364,792 Units outstanding, respectively. The Trust owns a portfolio of life insurance policies; a portion of the policies is encumbered by the economic interest of continuing fractional interest holders. The Trust’s portion of the portfolio consists of 3,177 and 3,252 life insurance policies, with fair values of $286.2 million and $263.6 million and an aggregate face value of approximately $1.3 billion and $1.3 billion at September 30, 2017 and December 31, 2016, respectively. The fair value of the interests in the life insurance policies owned by continuing fractional interest holders are not reflected in the financial statements of the Trust. Summary of Significant Accounting Policies Basis of Presentation The Trust’s primary purpose is the liquidation of the Trust’s assets and the distribution of proceeds to its beneficial interest holders. The Trust expects that fulfilling its purpose requires a significant amount of time, and that the Trust will have significant ongoing operations during that period due to the nature of its assets and its plan to maximize the proceeds to its beneficiaries by maintaining the majority of its life insurance policies until maturity. As a result, the Trust has concluded that its liquidation is not imminent, in accordance with the definitions under accounting principles generally accepted in the United States of America, and has not applied the liquidation basis of accounting in presenting its financial statements. The Trust will continue to evaluate its operations to determine when its liquidation becomes imminent and the liquidation basis of accounting is required. Investments in Life Insurance Policies The Trust accounts for its interests in life insurance policies at fair value in accordance with ASC 325-30, Investments in Insurance Contracts Fair Value of Life Insurance Policies The Trust follows ASC 820, Fair Value Measurements and Disclosures As a basis for considering such assumptions, the guidance establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. Level 1 relates to quoted prices in active markets for identical assets or liabilities. Level 2 relates to observable inputs other than quoted prices included in Level 1. Level 3 relates to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Trust’s investments in life insurance policies are considered to be Level 3 as there is currently no active market where the Trust is able to observe quoted prices for identical assets and the Trust’s valuation model incorporates significant inputs that are not observable. The Trust’s valuation of life insurance policies is a critical estimate within the financial statements. The Trust currently uses a probabilistic method of valuing life insurance policies, which the Trust believes to be the preferred valuation method in its industry. The Trust calculates the assets’ fair value using a present value technique to estimate the fair value of the projected future cash flows. The most significant assumptions in estimating the fair value are the Trust’s estimate of the insureds’ life expectancy and the discount rate. See Note 6, “Fair Value Measurements.” Income Recognition The Trust’s investments in life insurance policies are its primary source of income. Gain or loss is recognized from ongoing changes in the portfolio’s estimated fair value, including any gains or losses at maturity. Gains or losses from maturities are recognized at receipt of a death notice or verified obituary for an insured party, and determined based on the difference between the death benefit and the estimated fair value of the policy at maturity. Premiums Receivable The Trust assumed the Debtors’ receivables related to life insurance policy premiums and service fees that were paid by the Debtors on behalf of fractional interest holders prior to the Trust’s effective date. After December 9, 2016, the policy premiums allocable to continuing fractional interest holders are those persons' obligations and not the Trust. If a continuing fractional interest holder defaults on future premium obligations, such position is deemed contributed to the Trust in exchange for the number of Units provided by the Plan, as recently modified by the Bankruptcy Court The Trust maintains an allowance for doubtful accounts for estimated losses resulting from the inability to collect premiums and service fees receivable. Such estimates are based on the position holder’s payment history and other indications of potential uncollectability. After all attempts to collect a receivable have failed, receivables are written off against the allowance. At September 30, 2017 and December 31, 2016, the allowance for doubtful accounts was $5.0 million, all of which was for receivables assumed from the Debtors on the effective date. Outstanding receivable balances may be recoverable pursuant to the Trustee’s set-off rights under the Plan. Maturities Receivable Maturities receivable consist of the Trust’s portion of life insurance policy maturities that occurred but payment was not yet received. Income Taxes No provision for state or Federal income taxes has been made as the liability for such taxes is attributable to the Unit holders rather than the Trust. The Trust is a grantor trust with taxable income or loss passing through to the Unit holders. In certain instances, however, the Trust may be required under applicable state laws to remit directly to state tax authorities amounts otherwise due to Unit holders. Such payments on behalf of the Unit holders are deemed distributions to them. The Financial Accounting Standards Board (the “FASB”) has provided guidance for how uncertain tax positions should be recognized, measured, disclosed, and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether the tax positions are more-likely-than-not of being sustained when challenged or when examined by the applicable taxing authority. The Trust has no material uncertain income tax positions as of September 30, 2017 or December 31, 2016. The Trust also assumed income tax liabilities of the Debtors at its inception which total approximately $2.9 million as of September 30, 2017 and December 31, 2016 related to taxes, penalties, and interest from the Debtors’ 2008, 2009 and 2010 income tax returns. These obligations bear interest at 4% annually and are due in full by January 2020. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses primarily include professional services, legal fees and expected litigation settlements, some of which are obligations assumed by the Trust that were incurred prior to the effective date of the Trust. The Trust also accrues liabilities for state taxes payable and other miscellaneous accruals. The Trust accrues liabilities when costs are incurred and such costs can be reasonably estimated. Accrued expenses related to the Debtors’ bankruptcy are included in assumed liabilities on the accompanying balance sheet. Creditors’ Trust Funding Liability Pursuant to the Plan, in December 2016 and January 2017, the Trust contributed $2 million and $5 million respectively, to the Creditor’s Trust that was also established contemporaneously under the Plan. As of September 30, 2017, the Trust is obligated to fund an additional $5 million in January 2018. Premium Liability As of September 30, 2017 and December 31, 2016, the Trust holds $31.1 million and $25.8 million, respectively, in escrow for future payment of premium obligations. To the extent advanced premiums received from continuing fractional holders are not used for premium payments, they are refunded to the respective continuing fractional holder. Pre-Effective Maturity Liabilities On December 9, 2016, the Trust received funds related to maturities that occurred prior to the formation of the Trust. These funds are recognized as a liability on the accompanying balance sheet as pre-effective maturity liabilities owed to the fractional interest holders. Additionally, the Trust has recorded a receivable for maturities that occurred prior to December 9, 2016 where proceeds were not received as of that date. This receivable was $0 and $9.0 million as of September 30, 2017 and December 31, 2016 respectively and is included in pre-effective maturity liabilities on the accompanying balance sheet. Use of Estimates The preparation of these financial statements, in conformity with generally accepted accounting principles in the United States of America (“GAAP”), requires the Trust to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. Actual results could differ from these estimates and such differences could be material. The estimates related to the valuation of the life insurance policies represent significant estimates made by the Trust. Risks and Uncertainties The Trust encounters economic, legal, and longevity risk. The two main components of economic risk potentially impacting the Trust are market risk and concentration of credit risk. The Trust’s market risks include interest rate risk and the risk of declines in valuation of the Trust’s life insurance policies, including declines caused by the selection of increased discount rates associated with the Trust’s fair value model. It is reasonably possible that future changes to estimates involved in valuing life insurance policies could change and result in material effects to the future financial statements. Concentration of credit risk is the risk that an insurance carrier who has issued life insurance policies held by the Trust, does not remit the amount due under those policies due to the deteriorating financial condition of the carrier or otherwise. Another credit risk potentially impacting the Trust is the risk continuing fractional holders may default on their future premium obligations, increasing the Trust’s premium liability. There exists a legal risk courts would allow insurance carriers to retain premiums paid by the Trust in respect of insurance policies that are successfully rescinded or contested. In addition, our title or right to benefit from an insurance policy may be challenged by the insurer or the insured’s family. Longevity risk refers to the reasonable possibility that actual mortalities of insureds in the Trust’s portfolio extend over longer periods than are anticipated, resulting in the Trust paying more for premiums. The Trust maintains the majority of its cash in several accounts with a commercial bank. Balances on deposit are insured by the Federal Deposit Insurance Corporation (“FDIC”). However, from time to time the Trust's balances may exceed the FDIC insurable amount at its banks. Description of Securities Units represent beneficial interests in the Trust, and all holders of Units are entitled to receive cash distributions from the Trust in accordance with their respective Pro Rata shares. A Trust beneficiary’s respective “Pro Rata Share” means the ratio, expressed as a percentage, of (i) the number of Units which such Trust beneficiary is the registered owner, to (ii) the total number of Units outstanding as of the measurement date, subject to modification for purposes of distributing any recovered assets. Initial units of Position Holder Trust Interest were issued on the basis of one (1) Unit for each $1 of death benefit payable (rounded to the nearest dollar) associated with the ownership of Fractional Positions. Subsequent issuances of Units will be issued to continuing fractional interest holders if they default on their premium payment obligations. Such Units will be issued in exchange for the defaulting position, in accordance with the basis and discounts delineated in the Plan, as recently modified by the Bankruptcy Court. Each Unit holder has the same rights with respect to each Unit as every other Unit holder. Unit holders do not have any voting rights under the Position Holder Trust Agreement with respect to the appointment of any successor to the Trustee, filling any vacancy on the Governing Trust Board or any action to be taken by the Position Holder Trust, including without limitation whether the duration of the Trust should be extended after the end of the initial 10-year term. Unit holders have no liability for the debts and other obligations of the Position Holder Trust and bear no expenses in connection with the organization and administration of the Trust. The Trust is a pass-through tax entity and its Unit holders may be allocated taxable income without a matching cash distribution, leading to an unfunded tax obligation. The Trust has the right, but not the obligation, to offset against any distributions allocated to any Unit holder in an amount equal to all unpaid amounts owed by the holder, including all unpaid amounts owed for catch-up payments, pre-petition default amounts and post-effective date payment defaults. Under the Plan, the Trustee will distribute at least annually to the Unit holders all of the distributable cash (as defined in the Position Holder Trust Agreement) generated during each calendar year, subject to any reserve established by the Trustee reasonably necessary to maintain the value of the Registrant’s assets or to meet claims and contingent liabilities. All distributions by the Trust will be made in accordance with such holder’s Pro Rata share of the outstanding Units. Continuing Fractional Interests The continuing fractional interest of a fractional interest holder who made a continuing holder election will represent 95% of the beneficial ownership associated with the Fractional Interest with respect to which the Election was made, with the other 5% comprising the Continuing Position Holder Contribution made to the Position Holder Trust on the Effective Date. The continuing fractional interest holder ("CFH") is obligated to pay 95% of the premium payments and policy expenses allocable to the fractional interest. Upon maturity of a Policy, the CFH with positions in the Policy will be entitled to receive the Policy proceeds allocable to each such continuing fractional interest held. The Policy proceeds paid to a CFH will be reduced by (1) the servicing fee payable with respect to each such continuing fractional interest, and (2) any premium amount paid by the Trust prior to the date of death with respect to the continuing fractional interest that is not refunded as a result of the maturity. Upon the occurrence of a payment default with respect to a continuing fractional interest, the CFH will be deemed to have contributed the position to the Trust at a discount of 20%, effective as of the payment default date. Recently Issued Accounting Pronouncements In November 2016, the FASB issued guidance under the Account Standards Update (“ASU”) 2016-18, Statement of Cash Flows: Restricted Cash, which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Trust elected to adopt this provision early, and this adoption did not have a material impact on the Trust’s financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which converges the FASB and the International Accounting Standards Board (“IASB”) standard on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. In April 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year. As a result, the provisions of this ASU are now effective for interim and annual periods beginning after December 15, 2017. The Trust does not expect that this guidance will have a material impact on its financial position, results of operations or cash flows.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 2 - Commitments and Contingencies Litigation In accordance with applicable accounting guidance, the Trust establishes an accrued liability for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Trust does not establish an accrued liability. As a litigation or regulatory matter develops, the Trust, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. If, at the time of evaluation, the loss contingency related to a litigation or regulatory matter is not both probable and estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable. When a loss contingency related to a litigation or regulatory matter is deemed to be both probable and estimable, the Trust will establish an accrued liability with respect to such loss contingency and record a corresponding amount of litigation-related expense. The Trust will then continue to monitor the matter for further developments that could affect the amount of any such accrued liability. Indemnification of Certain Persons Under certain circumstances, the Trust may be required to indemnify certain persons performing services on behalf of the Trust for liability they may incur arising out of the indemnified persons' activities conducted on behalf of the Trust. There is no limitation on the maximum potential payments under these indemnification obligations and, due to the number and variety of events and circumstances under which these indemnification obligations could arise, the Trust is not able to estimate such maximum potential payments. The Trust has not made any payments under such indemnification obligations and no amount has been accrued in the accompanying financial statements for these indemnification obligations of the Trust.

Restricted Cash and Cash Equiva

Restricted Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2017
Restricted Cash and Cash Equivalents [Abstract]
Restricted Cash and Cash Equivalents	Note 3 - Restricted Cash and Cash Equivalents The Plan imposes restrictions on the Trust to maintain certain funds in segregated accounts. As of September 30, 2017 and December 31, 2016, the Trust has approximately $7.7 million and $26.2 million, respectively, in the pre-effective maturity escrow account which are distributable to the fractional interest holders in those policies that matured prior to the Plan becoming effective. The Plan further requires the Trust to maintain certain reserves in segregated accounts; as of September 30, 2017 and December 31, 2016, those reserves were approximately $44.4 million and $27.5 million, respectively. The Trust also maintains escrow accounts on behalf of the continuing fractional interest holders from which to fulfill their premium obligations; as of September 30, 2017 and December 31, 2016, the Trust held approximately $29.9 million and $25.8 million, respectively, on their behalf. See Note 1, "Premium Liability."

Life Insurance Policies

Life Insurance Policies	9 Months Ended
	Sep. 30, 2017
Life Insurance Policies [Abstract]
Life Insurance Policies	Note 4 - Life Insurance Policies As of September 30, 2017, the Trust owns an interest in 3,177 policies of which 620 are life settlement policies and 2,577 are viaticals (the “PHT Portfolio”). The PHT Portfolio’s aggregate face value is $1.3 billion as of September 30, 2017 of which $1.1 billion is attributable to life settlements and $180.4 million is attributable to viaticals. The PHT Portfolio’s aggregate fair value is $286.2 million as of September 30, 2017 of which $283.7 million is attributable to life settlements and $2.5 million is attributable to viaticals. The weighted average life expectancy calculated based on the fair value of the death benefit of insureds in the policies owned by the Trust at September 30, 2017 was 3.6 years. As of December 31, 2016, the Trust owned an interest in 3,252 policies of which 654 are life settlement policies and 2,598 are viaticals (the “PHT Portfolio”). The PHT Portfolio’s aggregate face value is $1.3 billion as of December 31, 2016 of which $1.1 billion is attributable to life settlements and $191.2 million is attributable to viaticals. The PHT Portfolio’s aggregate fair value is $263.6 million as of December 31, 2016 of which $261.6 million is attributable to life settlements and $2.0 million is attributable to viaticals. The weighted average life expectancy calculated based on the fair value of the death benefit of insureds in the policies owned by the Trust at December 31, 2016 was 4.0 years. Life expectancy reflects the probable number of years remaining in the life of a class of persons determined statistically, affected by such factors as heredity, physical condition, nutrition, and occupation. It is not an estimate or an indication of the actual expected maturity date or indication of the timing of expected cash flows from death benefits. See “Life Insurance policies,” in Note 6, “Fair Value Measurements.” The following tables summarizes the Trust's life insurance policies grouped by remaining life expectancy as of September 30 ,2017 and December 31, 2016: As of September 30, 2017: Remaining Life Expectancy (Years) Number of Life Insurance Policies Face Value Fair Value 0-1 25 $ 56,207,688 $ 43,884,176 1-2 44 69,880,054 42,137,638 2-3 64 81,805,300 35,859,153 3-4 57 87,802,823 28,775,972 4-5 108 181,159,206 42,876,670 Thereafter 2,879 807,373,873 92,622,111 Total 3,177 $ 1,284,228,944 $ 286,155,720 As of December 31, 2016: Remaining Life Expectancy (Years) Number of Life Insurance Policies Face Value Fair Value 0-1 19 $ 26,906,072 $ 22,344,600 1-2 29 59,109,822 38,672,708 2-3 60 53,027,573 26,251,734 3-4 59 95,930,412 35,577,890 4-5 86 112,725,236 29,193,315 Thereafter 2,999 942,298,899 111,538,793 Total 3,252 $ 1,289,998,014 $ 263,579,040 Estimated premiums to be paid by the Trust for its portfolio during each of the five succeeding fiscal years and thereafter as of September 30, 2017, are as follows: 2017 $ 9,852,086 2018 43,706,522 2019 50,208,934 2020 51,169,045 2021 46,980,546 Thereafter 207,370,714 Total $ 409,287,847 The amount of $409.3 million represents the estimated total future premium payable by the Trust. The Trust is required to pay its portion to keep the life insurance policies in force during the life expectancies of all the underlying insured lives. The estimated total future premium payments could increase or decrease significantly to the extent that insurance carriers increase the cost of insurance on their issued policies or that actual mortalities of insureds differs from the estimated life expectancies. If the continuing fractional holders default on their future premium obligations, the Trust’s premium liability may increase. The Trust anticipates funding the estimated premium payments from maturities of life insurance policies. It also maintains premium reserves and access to lines of credit.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
Notes Payable	Note 5 - Notes Payable On December 9, 2016, the Trust obtained a term loan from Vida Opportunity Fund, LP, an affiliate of Vida Capital, Inc., for $55.0 million. Interest accrues at 11% of outstanding balance per annum and is paid quarterly. Principal is due in full on December 9, 2018, but is not subject to a prepayment penalty. Substantially all of the Trust’s assets collateralize the loan. As of September 30, 2017 and December 31, 2016, the outstanding balance was $55.0 million. On December 9, 2016, the Trust entered into a revolving line of credit with Vida Longevity Fund, LP, an affiliate of Vida Capital, Inc., for $25.0 million. Interest accrues at 11% of outstanding balance and is paid quarterly. The line of credit matures on December 9, 2018, at which point any amount outstanding is due in full. As of September 30, 2017 and December 31, 2016, no amounts have been drawn on the line of credit. In accordance with the Plan, the Trust issued notes totaling approximately $36.5 million in exchange for claims against the Debtor’s estate and the incidental interests in life insurance policies. Those policies collateralize the Trust’s obligations under the notes. Interest accrues at 3% of outstanding balance and is paid annually in December. Principal is due in full on December 9, 2031. In accordance with the note, beginning in December 2017, the Trust is required to make annual payments to a sinking fund to pay future interest and principal. As of September 30, 2017 and December 31, 2016, the outstanding balance of the notes was $36.5 million. On March 28, 2017, the Trust, was ordered to pay the Chapter 11 trustee’s fees totaling $5.5 million. The first payment of $2.8 million was due promptly after the Court order and is included in accounts payable on the accompanying statement of assets and liabilities as of December 31, 2016. The remaining balance is in the form of a note payable in the amount of $2.8 million and is due in three equal annual payments on January 1 beginning in 2019. The note does not bear interest as ordered by the Court, thus the note has been discounted by $0.2 million, based on an implied interest rate of 3% as of December 31, 2016. As of September 30, 2017 and December 31, 2016, the outstanding balance was $2.6 million. Future scheduled principal payments on the above notes payable and required sinking fund contributions are as follows as of September 30, 2017: Sinking Fund Notes Payable 2017 $ 2,432,886 $ — 2018 2,432,886 55,000,000 2019 2,432,886 916,667 2020 2,432,886 916,667 2021 2,432,886 916,666 Thereafter 24,328,868 36,493,298 $ 36,493,298 $ 94,243,298

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 6 - Fair Value Measurements The Trust carries its life insurance policies at fair value. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified based on the following fair value hierarchy: Level 1 - Valuation is based on unadjusted quoted prices in active markets for identical assets and liabilities that are accessible at the reporting date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuation is determined from pricing inputs that are other than quoted prices in active markets that are either directly or indirectly observable as of the reporting date. Observable inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and interest rates and yield curves that are observable at commonly quoted intervals. Level 3 - Valuation is based on inputs that are both significant to the fair value measurement and unobservable. Level 3 inputs include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value generally require significant management judgment or estimation. The balances of the Trust's assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016, are as follows: As of September 30, 2017: Level 1 Level 2 Level 3 Total Fair Value Assets: Investment in life insurance policies $ — $ — $ 286,155,720 $ 286,155,720 $ — $ — $ 286,155,720 $ 286,155,720 As of December 31, 2016: Level 1 Level 2 Level 3 Total Fair Value Assets: Investment in life insurance policies $ — $ — $ 263,579,040 $ 263,579,040 $ — $ — $ 263,579,040 $ 263,579,040 Quantitative Information about Level 3 Fair Value Measurements Fair Value at 9/30/2017 Face value at 9/30/2017 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) Life insurance policies $ 286,155,720 $ 1,284,228,944 Discounted cash flow Discount rate 25.2%-31.7 % Life expectancy evaluation 3.6 years Fair Value at 12/31/16 Face value at 12/31/16 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) Life insurance policies $ 263,579,040 $ 1,289,998,014 Discounted cash flow Discount rate 24.7%-31.7 % Fair Value at 12/31/16 Face value at 12/31/16 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) Life expectancy evaluation 4.0 years Following is a description of the methodologies used to estimate the assets’ fair value measured on a recurring basis and within the above fair value hierarchy. The Portfolio was valued using a probabilistic approach, which is actuarially based. This approach fits the Portfolio’s cash flows (premium payments and death benefits) to a monthly mortality scale as generated by each insured’s specific life expectancy. This mortality scale is actuarially rolled forward from the life expectancy underwriting date to the valuation date. This mathematical approach is substantially the same as actuaries customarily use in the pricing of life insurance and annuities. The Trust discounted the monthly cash flows with interest and survivorship back to the valuation date of as of September 30, 2017 and December 31, 2016, to arrive at the Portfolio’s estimated value. The valuations presented here are net of a 2.65% servicing fee payable under the Plan. The Trust utilized each Policy’s “optimized” premium. The Trust relied on life expectancy values provided by its servicing company that were in turn provided to it from qualified industry experts. If a particular Policy did not have a life expectancy, the Trust used the Society of Actuaries’ 2015 Valuation Basic Tables, smoker distinct mortality tables developed by the U.S. Society of Actuaries (the “2015 VBT”) to obtain the average probability of death for similarly categorized persons and applied mortality multipliers by type/gender, to arrive at an estimated life expectancy for the insured. The mortality multipliers used are: 100% for the life settlement males, 100% for the life settlement females and 350% for the viaticals regardless of gender. The 2015 VBT are created based on the expected rates of death among different groups categorized by factors such as age and gender. If the insured dies earlier than expected, the return will be higher than if the insured dies when expected or later than expected. The Trust’s estimates allow for the possibility that if the insured dies earlier than expected, the premiums needed to keep the policy in force will not have to be paid. Conversely, the calculation also considers the possibility that if the insured lives longer than expected, more premium payments will be necessary. Life expectancy estimates are a significant input in the fair value determination. Future changes in the life expectancy estimates could have a material effect on the Portfolio’s fair value, which could have a material effect on its financial condition and results of operations. Life expectancy estimates for insureds over the age of 90 years are less reliable than estimates for younger persons, due to the relative lack of statistical information as to the health and mortality expectations for those over the age of 90 years. Accordingly, there is a correspondingly lower statistical basis for relying on life expectancy estimates based on medical underwriting for insureds in that age group. In addition, the average probability of death calculated in the 2015 VBT for those 90 years or older has less statistical reliability than the average probability of death calculations for younger persons. Nevertheless, the majority of industry participants continue to rely on medical underwriting and the 2015 VBT for all age ranges, including 90 and over. As the average age of the insureds for the life settlements in the Portfolio is 89 years, the Trust will continue to evaluate its ongoing reliance on the 2015 VBT and life expectancies based on medical underwriting and make adjustments to its underlying assumptions as actuarial knowledge regarding this population advances. Life expectancy sensitivity analysis The table below reflects the effect on the PHT Portfolio’s fair value if the actual life expectancy experienced is 5% less or 5% more than is currently estimated. If the life expectancy estimate increases by 5% or decreases by 5%, the change in estimated fair value of the life insurance policies as of September 30, 2017 and December 31, 2016 would be as follows: As of September 30, 2017 Average life expectancy Value Change in Value - 5% $ 301,220,686 $ 15,064,966 No change 3.6 years $ 286,155,720 $ — + 5% $ 271,624,213 $ (14,531,507 ) As of December 31, 2016 Average life expectancy Value Change in Value - 5% $ 277,276,497 $ 13,697,457 No change 4.0 years $ 263,579,040 $ — + 5% $ 249,069,410 $ (14,509,630 ) Discount rate The discount rate is another significant input in the fair value determination. The Trust’s estimate incorporates market factors, the size of the portfolio, and various policy specific quantitative and qualitative factors including known information about the underlying insurance policy, its economics, the insured and the insurer. The effect of changes in the weighted average discount rate on the death benefit and premiums used to estimate the PHT Portfolio’s fair value has been analyzed. If the weighted average discount rate increased or decreased by 2 percentage points and the other assumptions used to estimate fair value remained the same, the change in estimated fair value as of September 30, 2017 and December 31, 2016 would be as follows: As of September 30, 2017 Value Change in Value +2% $ 273,359,032 $ (12,796,688 ) No change $ 286,155,720 $ — -2% $ 300,310,106 $ 14,154,386 As of December 31, 2016 Value Change in Value +2% $ 250,218,915 $ (13,360,125 ) No change $ 263,579,040 $ — -2% $ 278,442,322 $ 14,863,282 Future changes in the discount rates used by the Trust to value life insurance policies could have a material effect on the Trust's yield on life settlement transactions, which could have a material adverse effect on the Trust’s financial condition and results of operations. The Trust re-evaluates its discount rates at the end of every reporting period in order to estimate the discount rates that could reasonably be used by market participants in a transaction involving the Trust's life insurance policies. In doing so, the Trust engages third party consultants to corroborate its assessment, engages in discussions with other market participants and extrapolates the discount rate underlying actual sales of insurance policies. Credit Exposure to Insurance Companies The following table provides information about the life insurance issuer concentrations that exceed 10% of total death benefit or 10% of total fair value of the Trust's life insurance policies as of September 30, 2017: Carrier Percentage of Face Value Percentage of Fair Value Carrier Rating The Lincoln National Life Insurance 11.3 % 14.1 % A + John Hancock Life Insurance (USA) 7.5 % 11.4 % A + Transamerica Financial Life Insurance 9.1 % 11.1 % A + Changes in Fair Value The following table provides a roll-forward in the changes in fair value for the three and nine months ended September 30, 2017, for the Trust’s life insurance policies: Three months ended (unaudited) Nine months ended (unaudited) Beginning balance $ 273,147,684 $ 263,579,040 Change in fair value 26,170,479 48,847,913 Matured policies, net of fees (19,344,711 ) (50,870,826 ) Premiums paid 6,182,269 24,599,593 Ending balance $ 286,155,720 $ 286,155,720 Changes in fair value included in earnings for the period relating to assets held at September 30, 2017 $ 9,480,259 $ 5,973,378

Operations and Significant Ac12

Operations and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Operations and Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Trust’s primary purpose is the liquidation of the Trust’s assets and the distribution of proceeds to its beneficial interest holders. The Trust expects that fulfilling its purpose requires a significant amount of time, and that the Trust will have significant ongoing operations during that period due to the nature of its assets and its plan to maximize the proceeds to its beneficiaries by maintaining the majority of its life insurance policies until maturity. As a result, the Trust has concluded that its liquidation is not imminent, in accordance with the definitions under accounting principles generally accepted in the United States of America, and has not applied the liquidation basis of accounting in presenting its financial statements. The Trust will continue to evaluate its operations to determine when its liquidation becomes imminent and the liquidation basis of accounting is required.
Investments in Life Insurance Policies	Investments in Life Insurance Policies The Trust accounts for its interests in life insurance policies at fair value in accordance with ASC 325-30, Investments in Insurance Contracts
Fair Value of Life Insurance Policies	Fair Value of Life Insurance Policies The Trust follows ASC 820, Fair Value Measurements and Disclosures As a basis for considering such assumptions, the guidance establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. Level 1 relates to quoted prices in active markets for identical assets or liabilities. Level 2 relates to observable inputs other than quoted prices included in Level 1. Level 3 relates to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Trust’s investments in life insurance policies are considered to be Level 3 as there is currently no active market where the Trust is able to observe quoted prices for identical assets and the Trust’s valuation model incorporates significant inputs that are not observable. The Trust’s valuation of life insurance policies is a critical estimate within the financial statements. The Trust currently uses a probabilistic method of valuing life insurance policies, which the Trust believes to be the preferred valuation method in its industry. The Trust calculates the assets’ fair value using a present value technique to estimate the fair value of the projected future cash flows. The most significant assumptions in estimating the fair value are the Trust’s estimate of the insureds’ life expectancy and the discount rate. See Note 6, “Fair Value Measurements.”
Income Recognition	Income Recognition The Trust’s investments in life insurance policies are its primary source of income. Gain or loss is recognized from ongoing changes in the portfolio’s estimated fair value, including any gains or losses at maturity. Gains or losses from maturities are recognized at receipt of a death notice or verified obituary for an insured party, and determined based on the difference between the death benefit and the estimated fair value of the policy at maturity.
Premiums Receivable	Premiums Receivable The Trust assumed the Debtors’ receivables related to life insurance policy premiums and service fees that were paid by the Debtors on behalf of fractional interest holders prior to the Trust’s effective date. After December 9, 2016, the policy premiums allocable to continuing fractional interest holders are those persons' obligations and not the Trust. If a continuing fractional interest holder defaults on future premium obligations, such position is deemed contributed to the Trust in exchange for the number of Units provided by the Plan, as recently modified by the Bankruptcy Court The Trust maintains an allowance for doubtful accounts for estimated losses resulting from the inability to collect premiums and service fees receivable. Such estimates are based on the position holder’s payment history and other indications of potential uncollectability. After all attempts to collect a receivable have failed, receivables are written off against the allowance. At September 30, 2017 and December 31, 2016, the allowance for doubtful accounts was $5.0 million, all of which was for receivables assumed from the Debtors on the effective date. Outstanding receivable balances may be recoverable pursuant to the Trustee’s set-off rights under the Plan.
Maturities Receivable	Maturities Receivable Maturities receivable consist of the Trust’s portion of life insurance policy maturities that occurred but payment was not yet received.
Income Taxes	Income Taxes No provision for state or Federal income taxes has been made as the liability for such taxes is attributable to the Unit holders rather than the Trust. The Trust is a grantor trust with taxable income or loss passing through to the Unit holders. In certain instances, however, the Trust may be required under applicable state laws to remit directly to state tax authorities amounts otherwise due to Unit holders. Such payments on behalf of the Unit holders are deemed distributions to them. The Financial Accounting Standards Board (the “FASB”) has provided guidance for how uncertain tax positions should be recognized, measured, disclosed, and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether the tax positions are more-likely-than-not of being sustained when challenged or when examined by the applicable taxing authority. The Trust has no material uncertain income tax positions as of September 30, 2017 or December 31, 2016. The Trust also assumed income tax liabilities of the Debtors at its inception which total approximately $2.9 million as of September 30, 2017 and December 31, 2016 related to taxes, penalties, and interest from the Debtors’ 2008, 2009 and 2010 income tax returns. These obligations bear interest at 4% annually and are due in full by January 2020.
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses Accounts payable and accrued expenses primarily include professional services, legal fees and expected litigation settlements, some of which are obligations assumed by the Trust that were incurred prior to the effective date of the Trust. The Trust also accrues liabilities for state taxes payable and other miscellaneous accruals. The Trust accrues liabilities when costs are incurred and such costs can be reasonably estimated. Accrued expenses related to the Debtors’ bankruptcy are included in assumed liabilities on the accompanying balance sheet.
Creditors' Trust Funding Liability	Creditors’ Trust Funding Liability Pursuant to the Plan, in December 2016 and January 2017, the Trust contributed $2 million and $5 million respectively, to the Creditor’s Trust that was also established contemporaneously under the Plan. As of September 30, 2017, the Trust is obligated to fund an additional $5 million in January 2018.
Premium Liability	Premium Liability As of September 30, 2017 and December 31, 2016, the Trust holds $31.1 million and $25.8 million, respectively, in escrow for future payment of premium obligations. To the extent advanced premiums received from continuing fractional holders are not used for premium payments, they are refunded to the respective continuing fractional holder.
Pre-Effective Maturity Liabilities	Pre-Effective Maturity Liabilities On December 9, 2016, the Trust received funds related to maturities that occurred prior to the formation of the Trust. These funds are recognized as a liability on the accompanying balance sheet as pre-effective maturity liabilities owed to the fractional interest holders. Additionally, the Trust has recorded a receivable for maturities that occurred prior to December 9, 2016 where proceeds were not received as of that date. This receivable was $0 and $9.0 million as of September 30, 2017 and December 31, 2016 respectively and is included in pre-effective maturity liabilities on the accompanying balance sheet.
Use of Estimates	Use of Estimates The preparation of these financial statements, in conformity with generally accepted accounting principles in the United States of America (“GAAP”), requires the Trust to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. Actual results could differ from these estimates and such differences could be material. The estimates related to the valuation of the life insurance policies represent significant estimates made by the Trust.
Risks and Uncertainties	Risks and Uncertainties The Trust encounters economic, legal, and longevity risk. The two main components of economic risk potentially impacting the Trust are market risk and concentration of credit risk. The Trust’s market risks include interest rate risk and the risk of declines in valuation of the Trust’s life insurance policies, including declines caused by the selection of increased discount rates associated with the Trust’s fair value model. It is reasonably possible that future changes to estimates involved in valuing life insurance policies could change and result in material effects to the future financial statements. Concentration of credit risk is the risk that an insurance carrier who has issued life insurance policies held by the Trust, does not remit the amount due under those policies due to the deteriorating financial condition of the carrier or otherwise. Another credit risk potentially impacting the Trust is the risk continuing fractional holders may default on their future premium obligations, increasing the Trust’s premium liability. There exists a legal risk courts would allow insurance carriers to retain premiums paid by the Trust in respect of insurance policies that are successfully rescinded or contested. In addition, our title or right to benefit from an insurance policy may be challenged by the insurer or the insured’s family. Longevity risk refers to the reasonable possibility that actual mortalities of insureds in the Trust’s portfolio extend over longer periods than are anticipated, resulting in the Trust paying more for premiums. The Trust maintains the majority of its cash in several accounts with a commercial bank. Balances on deposit are insured by the Federal Deposit Insurance Corporation (“FDIC”). However, from time to time the Trust's balances may exceed the FDIC insurable amount at its banks.
Description of Securities	Description of Securities Units represent beneficial interests in the Trust, and all holders of Units are entitled to receive cash distributions from the Trust in accordance with their respective Pro Rata shares. A Trust beneficiary’s respective “Pro Rata Share” means the ratio, expressed as a percentage, of (i) the number of Units which such Trust beneficiary is the registered owner, to (ii) the total number of Units outstanding as of the measurement date, subject to modification for purposes of distributing any recovered assets. Initial units of Position Holder Trust Interest were issued on the basis of one (1) Unit for each $1 of death benefit payable (rounded to the nearest dollar) associated with the ownership of Fractional Positions. Subsequent issuances of Units will be issued to continuing fractional interest holders if they default on their premium payment obligations. Such Units will be issued in exchange for the defaulting position, in accordance with the basis and discounts delineated in the Plan, as recently modified by the Bankruptcy Court. Each Unit holder has the same rights with respect to each Unit as every other Unit holder. Unit holders do not have any voting rights under the Position Holder Trust Agreement with respect to the appointment of any successor to the Trustee, filling any vacancy on the Governing Trust Board or any action to be taken by the Position Holder Trust, including without limitation whether the duration of the Trust should be extended after the end of the initial 10-year term. Unit holders have no liability for the debts and other obligations of the Position Holder Trust and bear no expenses in connection with the organization and administration of the Trust. The Trust is a pass-through tax entity and its Unit holders may be allocated taxable income without a matching cash distribution, leading to an unfunded tax obligation. The Trust has the right, but not the obligation, to offset against any distributions allocated to any Unit holder in an amount equal to all unpaid amounts owed by the holder, including all unpaid amounts owed for catch-up payments, pre-petition default amounts and post-effective date payment defaults. Under the Plan, the Trustee will distribute at least annually to the Unit holders all of the distributable cash (as defined in the Position Holder Trust Agreement) generated during each calendar year, subject to any reserve established by the Trustee reasonably necessary to maintain the value of the Registrant’s assets or to meet claims and contingent liabilities. All distributions by the Trust will be made in accordance with such holder’s Pro Rata share of the outstanding Units.
Continuing Fractional Interests	Continuing Fractional Interests The continuing fractional interest of a fractional interest holder who made a continuing holder election will represent 95% of the beneficial ownership associated with the Fractional Interest with respect to which the Election was made, with the other 5% comprising the Continuing Position Holder Contribution made to the Position Holder Trust on the Effective Date. The continuing fractional interest holder ("CFH") is obligated to pay 95% of the premium payments and policy expenses allocable to the fractional interest. Upon maturity of a Policy, the CFH with positions in the Policy will be entitled to receive the Policy proceeds allocable to each such continuing fractional interest held. The Policy proceeds paid to a CFH will be reduced by (1) the servicing fee payable with respect to each such continuing fractional interest, and (2) any premium amount paid by the Trust prior to the date of death with respect to the continuing fractional interest that is not refunded as a result of the maturity. Upon the occurrence of a payment default with respect to a continuing fractional interest, the CFH will be deemed to have contributed the position to the Trust at a discount of 20%, effective as of the payment default date.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2016, the FASB issued guidance under the Account Standards Update (“ASU”) 2016-18, Statement of Cash Flows: Restricted Cash, which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Trust elected to adopt this provision early, and this adoption did not have a material impact on the Trust’s financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which converges the FASB and the International Accounting Standards Board (“IASB”) standard on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. In April 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year. As a result, the provisions of this ASU are now effective for interim and annual periods beginning after December 15, 2017. The Trust does not expect that this guidance will have a material impact on its financial position, results of operations or cash flows.

Life Insurance Policies (Tables

Life Insurance Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Life Insurance Policies [Abstract]
Trust's Life Insurance Policies Grouped by Remaining Life Expectancy	The following tables summarizes the Trust's life insurance policies grouped by remaining life expectancy as of September 30 ,2017 and December 31, 2016: As of September 30, 2017: Remaining Life Expectancy (Years) Number of Life Insurance Policies Face Value Fair Value 0-1 25 $ 56,207,688 $ 43,884,176 1-2 44 69,880,054 42,137,638 2-3 64 81,805,300 35,859,153 3-4 57 87,802,823 28,775,972 4-5 108 181,159,206 42,876,670 Thereafter 2,879 807,373,873 92,622,111 Total 3,177 $ 1,284,228,944 $ 286,155,720 As of December 31, 2016: Remaining Life Expectancy (Years) Number of Life Insurance Policies Face Value Fair Value 0-1 19 $ 26,906,072 $ 22,344,600 1-2 29 59,109,822 38,672,708 2-3 60 53,027,573 26,251,734 3-4 59 95,930,412 35,577,890 4-5 86 112,725,236 29,193,315 Thereafter 2,999 942,298,899 111,538,793 Total 3,252 $ 1,289,998,014 $ 263,579,040
Estimated Premiums to be Paid by the Trust for its Portfolio	Estimated premiums to be paid by the Trust for its portfolio during each of the five succeeding fiscal years and thereafter as of September 30, 2017, are as follows: 2017 $ 9,852,086 2018 43,706,522 2019 50,208,934 2020 51,169,045 2021 46,980,546 Thereafter 207,370,714 Total $ 409,287,847

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
Future Scheduled Principal Payments of Notes Payable and Sinking Fund Contributions	Future scheduled principal payments on the above notes payable and required sinking fund contributions are as follows as of September 30, 2017: Sinking Fund Notes Payable 2017 $ 2,432,886 $ — 2018 2,432,886 55,000,000 2019 2,432,886 916,667 2020 2,432,886 916,667 2021 2,432,886 916,666 Thereafter 24,328,868 36,493,298 $ 36,493,298 $ 94,243,298

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements [Abstract]
Assets Measured at Fair Value on Recurring Basis	The balances of the Trust's assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016, are as follows: As of September 30, 2017: Level 1 Level 2 Level 3 Total Fair Value Assets: Investment in life insurance policies $ — $ — $ 286,155,720 $ 286,155,720 $ — $ — $ 286,155,720 $ 286,155,720 As of December 31, 2016: Level 1 Level 2 Level 3 Total Fair Value Assets: Investment in life insurance policies $ — $ — $ 263,579,040 $ 263,579,040 $ — $ — $ 263,579,040 $ 263,579,040
Quantitative Information about Level 3 Fair Value Measurements	Quantitative Information about Level 3 Fair Value Measurements Fair Value at 9/30/2017 Face value at 9/30/2017 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) Life insurance policies $ 286,155,720 $ 1,284,228,944 Discounted cash flow Discount rate 25.2%-31.7 % Life expectancy evaluation 3.6 years Fair Value at 12/31/16 Face value at 12/31/16 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) Life insurance policies $ 263,579,040 $ 1,289,998,014 Discounted cash flow Discount rate 24.7%-31.7 % Fair Value at 12/31/16 Face value at 12/31/16 Valuation Technique(s) Unobservable Inputs Range (Weighted Average) Life expectancy evaluation 4.0 years
Change in Estimated Fair Value	The table below reflects the effect on the PHT Portfolio’s fair value if the actual life expectancy experienced is 5% less or 5% more than is currently estimated. If the life expectancy estimate increases by 5% or decreases by 5%, the change in estimated fair value of the life insurance policies as of September 30, 2017 and December 31, 2016 would be as follows: As of September 30, 2017 Average life expectancy Value Change in Value - 5% $ 301,220,686 $ 15,064,966 No change 3.6 years $ 286,155,720 $ — + 5% $ 271,624,213 $ (14,531,507 ) As of December 31, 2016 Average life expectancy Value Change in Value - 5% $ 277,276,497 $ 13,697,457 No change 4.0 years $ 263,579,040 $ — + 5% $ 249,069,410 $ (14,509,630 ) The effect of changes in the weighted average discount rate on the death benefit and premiums used to estimate the PHT Portfolio’s fair value has been analyzed. If the weighted average discount rate increased or decreased by 2 percentage points and the other assumptions used to estimate fair value remained the same, the change in estimated fair value as of September 30, 2017 and December 31, 2016 would be as follows: As of September 30, 2017 Value Change in Value +2% $ 273,359,032 $ (12,796,688 ) No change $ 286,155,720 $ — -2% $ 300,310,106 $ 14,154,386 As of December 31, 2016 Value Change in Value +2% $ 250,218,915 $ (13,360,125 ) No change $ 263,579,040 $ — -2% $ 278,442,322 $ 14,863,282
Changes in Fair Value for Trusts Life Insurance Policies	Changes in Fair Value The following table provides a roll-forward in the changes in fair value for the three and nine months ended September 30, 2017, for the Trust’s life insurance policies: Three months ended (unaudited) Nine months ended (unaudited) Beginning balance $ 273,147,684 $ 263,579,040 Change in fair value 26,170,479 48,847,913 Matured policies, net of fees (19,344,711 ) (50,870,826 ) Premiums paid 6,182,269 24,599,593 Ending balance $ 286,155,720 $ 286,155,720 Changes in fair value included in earnings for the period relating to assets held at September 30, 2017 $ 9,480,259 $ 5,973,378

Operations and Significant Ac16

Operations and Significant Accounting Policies (Details)	1 Months Ended		9 Months Ended
	Jan. 31, 2017USD ($)	Dec. 31, 2016USD ($)ShareholderPolicyshares	Sep. 30, 2017USD ($)ShareholderPolicyComponentshares	Dec. 09, 2016shares
Operations and Significant Accounting Policies [Abstract]
Number of units of beneficial interest issued to fractional interest holders (in shares) | shares				1,012,355,948
Number of unit holders | Shareholder		12,243	10,386
Number of units outstanding (in shares) | shares		1,012,364,792	1,154,518,519
Number of life insurance policies | Policy		3,252	3,177
Fair value of life insurance policies		$ 263,579,040	$ 286,155,720
Aggregate face value of life insurance policies		1,289,998,014	1,284,228,944
Premiums Receivable [Abstract]
Allowance for doubtful accounts		5,000,000	5,000,000
Income Taxes [Abstract]
Income tax liabilities of Debtors assumed		2,900,000	$ 2,900,000
Interest on income tax obligations			4.00%
Creditors' Trust Funding Liability [Abstract]
Contribution to creditor trust	$ 5,000,000	2,000,000
Outstanding funding obligation		10,000,000	$ 5,000,000
Premium Liability [Abstract]
Escrow for future payment of premium obligations		25,776,263	31,126,592
Pre-Effective Maturity Liabilities [Abstract]
Receivables for maturities included in pre-effective maturity liabilities		$ 9,000,000	$ 0
Risks and Uncertainties [Abstract]
Number of main components of economic risk | Component			2
Description of Securities [Abstract]
Number of units issued for each dollar of death benefit payable (in shares) | shares			1
Value of death benefit payable for each unit in Trust issued			$ 1
Initial term of trust agreement			10 years
Continuing Fractional Interests [Abstract]
Percentage of beneficial ownership by continuing fractional interest holder			95.00%
Percentage of beneficial ownership by position holder trust			5.00%
Percentage of premium payments and policy expenses allocable to fractional interest to be paid by continuing fractional interest			95.00%
Discount at which CFH will be deemed to have contributed the position to Trust upon payment default			20.00%

Restricted Cash and Cash Equi17

Restricted Cash and Cash Equivalents (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents [Abstract]
Pre-effective maturity escrow	$ 7,700,000	$ 26,200,000
Cash reserve	44,400,000	27,500,000
Escrow to fulfill premium obligations of continuing fractional interest holders	$ 29,900,000	$ 25.8

Life Insurance Policies (Detail

Life Insurance Policies (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2017USD ($)Policy	Dec. 31, 2016USD ($)Policy
Schedule of Life Settlement Contracts, Fair Value Method [Line Items]
Weighted average life expectancy	3 years 7 months 6 days	4 years
Number of life insurance policies [Abstract]
0-1 | Policy	25	19
1-2 | Policy	44	29
2-3 | Policy	64	60
3-4 | Policy	57	59
4-5 | Policy	108	86
Thereafter | Policy	2,879	2,999
Total | Policy	3,177	3,252
Face value [Abstract]
0-1	$ 56,207,688	$ 26,906,072
1-2	69,880,054	59,109,822
2-3	81,805,300	53,027,573
3-4	87,802,823	95,930,412
4-5	181,159,206	112,725,236
Thereafter	807,373,873	942,298,899
Total	1,284,228,944	1,289,998,014
Fair value [Abstract]
0-1	43,884,176	22,344,600
1-2	42,137,638	38,672,708
2-3	35,859,153	26,251,734
3-4	28,775,972	35,577,890
4-5	42,876,670	29,193,315
Thereafter	92,622,111	111,538,793
Total	286,155,720	$ 263,579,040
Estimated premiums to be paid [Abstract]
2,017	9,852,086
2,018	43,706,522
2,019	50,208,934
2,020	51,169,045
2,021	46,980,546
Thereafter	207,370,714
Total	$ 409,287,847
Life Settlement Policies [Member]
Number of life insurance policies [Abstract]
Total | Policy	620	654
Face value [Abstract]
Total	$ 1,100,000,000	$ 1,100,000,000
Fair value [Abstract]
Total	$ 283,700,000	$ 261,600,000
Viaticals [Member]
Number of life insurance policies [Abstract]
Total | Policy	2,577	2,598
Face value [Abstract]
Total	$ 180,400,000	$ 191,200,000
Fair value [Abstract]
Total	$ 2,500,000	$ 2,000,000

Notes Payable (Details)

Notes Payable (Details)	Mar. 28, 2017USD ($)	Sep. 30, 2017USD ($)Payment	Dec. 31, 2016USD ($)	Dec. 09, 2016USD ($)
Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				11.00%
Line of credit, maximum borrowing capacity				$ 25,000,000
Line of credit, maturity date		Dec. 9, 2018
Line of credit, outstanding amount		$ 0	$ 0
Sinking Fund [Member]
Debt Instrument [Line Items]
Debt instrument face amount		$ 36,500,000
Debt instrument, interest rate		3.00%
Debt instrument, maturity date		Dec. 9, 2031
Long term debt, outstanding amount		$ 36,493,298	36,500,000
Notes Payable [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument face amount				$ 55,000,000
Debt instrument, interest rate				11.00%
Debt instrument, maturity date		Dec. 9, 2018
Long term debt, outstanding amount		$ 55,000,000	55,000,000
Notes Payable [Member] | Notes Payable for Chapter 11 Trustee's Fees [Member]
Debt Instrument [Line Items]
Long term debt, outstanding amount		2,600,000	2,600,000
Trustee fees	$ 5,500,000
Trustee fee due amount			$ 2,800,000
Long term debt, gross		$ 2,800,000
Number of annual payments | Payment		3
Note payable discount amount	$ 200,000
Implied interest rate			3.00%

Notes Payable, Future Scheduled

Notes Payable, Future Scheduled Principal Payments of Notes Payable and Sinking Fund Contributions (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Sinking Fund [Member]
Future scheduled principal payments [Abstract]
2,017	$ 2,432,886
2,018	2,432,886
2,019	2,432,886
2,020	2,432,886
2,021	2,432,886
Thereafter	24,328,868
Long-term debt	36,493,298	$ 36,500,000
Notes Payable [Member]
Future scheduled principal payments [Abstract]
2,017	0
2,018	55,000,000
2,019	916,667
2,020	916,667
2,021	916,666
Thereafter	36,493,298
Long-term debt	$ 94,243,298

Fair Value Measurements, Assets

Fair Value Measurements, Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets [Abstract]
Fair value of life insurance policies	$ 286,155,720	$ 263,579,040
Recurring [Member]
Assets [Abstract]
Fair value of life insurance policies	286,155,720	263,579,040
Recurring [Member] | Level 1 [Member]
Assets [Abstract]
Fair value of life insurance policies	0	0
Recurring [Member] | Level 2 [Member]
Assets [Abstract]
Fair value of life insurance policies	0	0
Recurring [Member] | Level 3 [Member]
Assets [Abstract]
Fair value of life insurance policies	$ 286,155,720	$ 263,579,040

Fair Value Measurements, Quanti

Fair Value Measurements, Quantitative Information about Level 3 Fair Value Measurements (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value of life insurance policies	$ 286,155,720	$ 263,579,040
Face value	$ 1,284,228,944	$ 1,289,998,014
Servicing fee payable percentage	2.65%
Mortality multipliers rate for life settlement male	100.00%
Mortality multipliers rate for life settlement female	100.00%
Mortality multipliers rate for viaticals regardless of gender	350.00%
Maximum life expectancy estimates for insureds considered reliable	90 years
Average age of the insureds for life settlements	89 years
Level 3 [Member] | Life Settlement Policies [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Unobservable inputs	Life expectancy evaluation	Life expectancy evaluation
Life expectancy evaluation	3 years 7 months 6 days	4 years
Discounted Cash Flow [Member] | Level 3 [Member] | Life Settlement Policies [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value of life insurance policies	$ 286,155,720	$ 263,579,040
Face value	$ 1,284,228,944	$ 1,289,998,014
Unobservable inputs	Discount rate	Discount rate
Discounted Cash Flow [Member] | Level 3 [Member] | Life Settlement Policies [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	25.20%	24.70%
Discounted Cash Flow [Member] | Level 3 [Member] | Life Settlement Policies [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	31.70%	31.70%

Fair Value Measurements, Change

Fair Value Measurements, Change in Estimated Fair Value (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Life expectancy sensitivity analysis [Abstract]
Average life expectancy	3 years 7 months 6 days	4 years
Impact of -5% in life expectancy, value	$ 301,220,686	$ 277,276,497
No change, value	286,155,720	263,579,040
Impact of +5% in life expectancy, value	271,624,213	249,069,410
Impact of -5% change in life expectancy, change in value	15,064,966	13,697,457
Impact of +5% change in life expectancy, change in value	(14,531,507)	(14,509,630)
Discount rate [Abstract]
Impact of +2% in discount rate, value	273,359,032	250,218,915
No change, value	286,155,720	263,579,040
Impact of -2% in discount rate, value	300,310,106	278,442,322
Impact of +2% change in discount rate, change in value	(12,796,688)	(13,360,125)
Impact of -2% change in discount rate, change in value	$ 14,154,386	$ 14,863,282

Fair Value Measurements, Life I

Fair Value Measurements, Life Insurance Issuer Concentrations (Details) - Credit Concentration Risk [Member] - Carrier A+ Rating [Member]	9 Months Ended
	Sep. 30, 2017
Face Value of Life Insurance Policies [Member] | The Lincoln National Life Insurance [Member]
Concentration Risk [Line Items]
Concentrations risk percentage	11.30%
Face Value of Life Insurance Policies [Member] | John Hancock Life Insurance (USA) [Member]
Concentration Risk [Line Items]
Concentrations risk percentage	7.50%
Face Value of Life Insurance Policies [Member] | Transamerica Financial Life Insurance [Member]
Concentration Risk [Line Items]
Concentrations risk percentage	9.10%
Fair Value of Life Insurance Policies [Member] | The Lincoln National Life Insurance [Member]
Concentration Risk [Line Items]
Concentrations risk percentage	14.10%
Fair Value of Life Insurance Policies [Member] | John Hancock Life Insurance (USA) [Member]
Concentration Risk [Line Items]
Concentrations risk percentage	11.40%
Fair Value of Life Insurance Policies [Member] | Transamerica Financial Life Insurance [Member]
Concentration Risk [Line Items]
Concentrations risk percentage	11.10%

Fair Value Measurements, Chan25

Fair Value Measurements, Changes in Fair Value (Details) - Life Insurance Policies [Member] - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Changes in Fair Value [Roll Forward]
Beginning balance	$ 273,147,684	$ 263,579,040
Change in fair value	26,170,479	48,847,913
Matured policies, net of fees	(19,344,711)	(50,870,826)
Premiums paid	6,182,269	24,599,593
Ending balance	286,155,720	286,155,720
Changes in fair value included in earnings for the period relating to assets held at September 30, 2017	$ 9,480,259	$ 5,973,378