The Master of Lake-town will usually be in a graveyard as its last ability resolves.

If The Master of Lake-town dies at the same time that a player loses life (for example, if it dies in combat and another creature dealt combat damage to a player), you choose the order for The Master of Lake-town's two triggered abilities. If the mill effect resolves first, those cards—and also The Master of Lake-town—will be in graveyards before you determine how many cards to draw with its last ability.