Asbestos trust funds rarely pay a claim in full. Each trust values a claim using its published schedule and then pays a portion of that value, known as the payment percentage. Trust leadership sets this figure and revisits it over time, so money remains for people diagnosed in the years ahead. That is why two reliable sources can list different numbers for the same trust: they captured it at different points in time.
Why Asbestos Trust Funds Pay Only a Percentage of Claim Value
A bankruptcy trust starts with a limited pool of money and an obligation that can stretch across decades. Asbestos-related diseases often take many years to appear after exposure. If a trust paid every early claim in full, it could run dry before coworkers from the same job sites ever got sick.
Trusts are designed to treat current and future claimants fairly, so each claim is paid at a fraction of its value. That fraction is matched to the trust’s assets and its forecast of future claims. The payment percentage is neither a penalty nor a negotiating tactic. It is what keeps the fund available for the next family.
How Asbestos Trust Payment Percentages Are Calculated
The basic process is similar at most trusts:
- Scheduled values. Each trust’s distribution procedures assign a value to each disease category. Mesothelioma generally carries the highest values.
- Expedited review. A claim approved through expedited review is usually valued at the scheduled amount.
- Individual review. A claim sent through individual review can be valued higher or lower, depending on the specific facts.
- Payment percentage. The approved value is multiplied by the trust’s current payment percentage to arrive at the actual payment.
Payment percentages are reviewed periodically. Changes generally require agreement from the trustees and from the representatives of current and future claimants. Percentages have been lowered when claims outpaced projections and raised when a trust’s finances improved. When a percentage goes up, many trusts send supplemental payments to claimants who were paid at the lower rate.
Why Online Asbestos Trust Payout Figures Go Out of Date
Specific payout percentages appear on many websites because they look authoritative. But a payment percentage is a policy decision that can change, and each trust publishes its own current figure. A number copied onto a website is accurate the day it is posted and can quietly become outdated afterward. Readers get no notice when that happens.
Outdated numbers can lead to real mistakes. A family relying on an old figure may overestimate or underestimate what the trusts will contribute. Either error can affect important decisions, such as:
- whether to pursue a lawsuit
- how to evaluate a settlement offer
- which trust claims to file first
The reliable source is each trust’s own documentation at the time of filing, because that is when the number matters to you. Treat any percentage you find elsewhere as history, not a quote.
How Much Money Is Held in Asbestos Bankruptcy Trusts
The system is large. A U.S. Government Accountability Office review found that dozens of asbestos bankruptcy trusts held tens of billions of dollars in combined assets. It also found they had paid millions of claims worth billions of dollars over the preceding decades. Many trusts also process claims in the order they are received, so filing promptly can matter.
Which trusts apply to your situation depends on your work history. The major ones are listed in our asbestos trust fund list.
Coordinating Asbestos Trust Claims With a Mesothelioma Lawsuit
Most mesothelioma cases pursue two paths at once:
- trust claims against companies that went bankrupt
- a lawsuit against companies that are still in business
These paths can affect each other. This applies when the proper requests and evidence are presented. As a result, the timing and order of trust filings can influence the outcome of a lawsuit, and the rules differ from state to state.
None of this is a reason to avoid trust claims. It is a reason to file them as part of one coordinated plan, managed by a lawyer who is also handling the lawsuit. Learn more about how the process works in our guide to asbestos trust fund claims.
What Asbestos Trust Fund Compensation Means for Your Family
The honest answer to “how much will the trusts pay?” is that it depends on three things:
- which trusts match your work history
- each trust’s payment schedule
- each trust’s payment percentage when you file
These questions have answers. They just can’t come from a marketing page.
To have your work history reviewed against both trust funds and active defendants, start with a free case review. For a full picture of how compensation arrives from trusts and lawsuits combined, see our guide to asbestos claim payouts.