Asbestos trust funds are compensation funds created in bankruptcy by companies that made or used asbestos products. When these companies reorganized, they had to set aside money for the people their products harmed. That includes people who would not develop an asbestos-related disease until many years after exposure. Filing a trust claim does not require a lawsuit. For many mesothelioma patients and families, trust claims are one part of a larger compensation strategy.
What Is an Asbestos Trust Fund and How Was It Created?
Asbestos lawsuits pushed many manufacturers into bankruptcy. Congress responded by adding a provision to the Bankruptcy Code. It allows a company facing asbestos liability to reorganize and continue operating, but only if it funds a trust to assume that liability. Once the trust is in place, injured people file claims with the trust under its published rules instead of suing the company. Those rules are known as trust distribution procedures.
Each asbestos trust operates independently. It has its own trustees, eligibility criteria, evidence requirements, and procedures. There is no single national asbestos fund. Instead, there are dozens of separate trusts. Some cover one company, and others cover several related businesses. You can see the major trusts in our asbestos trust fund list.
How Much Money Is in Asbestos Bankruptcy Trusts?
The most frequently cited public review is the U.S. Government Accountability Office (GAO) report. It found that dozens of asbestos trusts held tens of billions of dollars in combined assets and had paid millions of claims. Those figures change as trusts pay claims and their investments rise or fall. The broader point holds: substantial money exists specifically to compensate people harmed by asbestos. Families who never connect their loved one’s work history to a bankrupt company may miss compensation they are eligible for.
Who Qualifies to File an Asbestos Trust Claim?
Each trust sets its own eligibility rules, but nearly all of them require two things:
- A qualifying diagnosis. This is documented by medical records. Covered conditions can include mesothelioma, asbestos-related lung cancer, asbestosis, and other asbestos diseases.
- Proof of exposure. This is evidence linking the person’s asbestos exposure to that trust’s products, job sites, or operations.
Claims are not limited to the person who was exposed. Spouses, children, and estates can often file on behalf of a loved one who has passed away. Many trusts also recognize secondhand exposure, such as a family member who washed contaminated work clothes.
A pipefitter with mesothelioma does not file with every trust. He files with the trusts whose products appear in his work history. Making that connection is the core of every trust claim. It draws on employment records, product-identification evidence, coworker statements, and job-site histories.
How the Asbestos Trust Claims Process Works
Most trusts offer two review options:
- Expedited review pays a set, scheduled amount for claims that meet standard criteria. It is generally the faster route.
- Individual review evaluates the specific facts of a claim. It may produce a different value, but it usually takes longer.
Under either option, an approved claim is paid at the trust’s current payment percentage. That is a fraction of the claim’s full value, set by the trustees, so money remains for future claimants. Payment percentages change over time, so figures quoted online are often out of date. Our guide to asbestos trust fund payouts explains how they work.
Filling out the forms is usually manageable. Building the evidence is the hard part. A trust claim succeeds or fails on how well the exposure evidence matches that trust’s criteria. A thinly documented filing may recover less than a well-supported one. Trusts also have their own filing deadlines, which may be connected to the deadlines that apply in court. Reviewing a work history against the relevant trusts early is important, even when a lawsuit is the main focus.
Can You File Asbestos Trust Claims and a Mesothelioma Lawsuit at the Same Time?
Many mesothelioma cases involve both. Trust claims address exposure to products from bankrupt companies, and a lawsuit can be pursued against companies that are still in business. Because the two cover different parts of the same exposure history, they usually work together rather than compete.
Timing still matters. Trust claims can affect a pending lawsuit, including how a verdict or settlement is divided among defendants. Some states also require plaintiffs to disclose their trust claims during litigation. For these reasons, trust filings and lawsuits should be handled as one coordinated plan.
Next Steps: Getting Help With an Asbestos Trust Claim
You do not need to figure out on your own which trusts apply to your family. The answer starts with a work history: where the person worked, what jobs they did, and which products they handled or worked near. An experienced asbestos attorney can compare that history against trust criteria and potential defendants in lawsuits simultaneously to help pursue every available source of compensation.
The details you already remember about your loved one’s career are often the best place to begin. To have your family’s exposure history reviewed, request a free case review today.