According to the tabloid, The Globe, Phillip III faked his death on THE YOUNG AND THE RESTLESS because he was gay.
Thom Bierdz feared coming out would ruin his career, but now he's returning to Y&R and his character, Phillip Chancellor III, is gay just like him! His character was killed in 1989 after "dying" in a drunk driving accident. A Y&R insider tells The Globe that "Phillip is GAY and faked his death because he couldn't continue living a lie!"
They also speculate that Phillip III may hook up with gay lawyer, Rafe.
Since this is a tabloid take it with a grain of salt, but it makes sense given what we know so far.
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