What Is an Asbestos Trust Fund? Compensation & Eligibility
Understanding Asbestos Trust Funds
If you or a loved one has been diagnosed with mesothelioma or asbestos-related lung cancer, you may have heard about asbestos trust funds. These trusts contain approximately $32 billion specifically set aside to compensate victims of asbestos exposure.
But what exactly are these trust funds, how do they work, and how can you access this compensation? This guide answers these critical questions.
What Are Asbestos Trust Funds?
Asbestos trust funds are legal financial entities created when companies responsible for asbestos exposure file for bankruptcy. Unlike regular bankruptcy proceedings, companies facing asbestos-related liabilities are required to establish special trusts to compensate current and future victims.
As Paul Danzinger explains: “These trust funds are actually different bankruptcy trusts that have been set up for a number of different defendants. Unlike individuals who go into bankruptcy, when companies go into bankruptcies, they set up trusts where they put assets, money.”
These trusts ensure that even if the original company no longer exists, victims can still receive compensation for their asbestos-related illnesses.
How Asbestos Trust Funds Were Created
The establishment of asbestos trust funds began in the 1980s when Johns-Manville Corporation, once the largest asbestos manufacturer in the United States, filed for bankruptcy due to mounting asbestos litigation. To resolve this unprecedented situation, the bankruptcy court mandated the creation of the first asbestos trust fund.
This set a legal precedent that other companies would follow. Since then, over 60 asbestos trusts have been established, collectively holding approximately $32 billion to compensate victims.
Who Qualifies for Compensation from Asbestos Trust Funds?
Trust funds primarily compensate individuals diagnosed with asbestos-related diseases who were exposed to products manufactured or used by the bankrupt companies. Eligible conditions typically include:
- Mesothelioma
- Asbestos-related lung cancer
- Asbestosis
- Pleural thickening
- Other asbestos-related diseases
Each trust has specific criteria for qualification, which may include:
- Medical documentation confirming an asbestos-related diagnosis
- Evidence of exposure to the company’s asbestos products
- Documentation of the time period and location of exposure
Major Asbestos Trust Funds Currently Available
Some of the largest asbestos trust funds include:
| Trust Fund Name |
Original Company |
Estimated Assets |
| United States Gypsum Asbestos Personal Injury Settlement Trust |
U.S. Gypsum |
$3.9 billion |
| Owens Corning Fibreboard Asbestos Personal Injury Trust |
Owens Corning |
$3.4 billion |
| Pittsburgh Corning Asbestos PI Trust |
Pittsburgh Corning |
$3.5 billion |
| W.R. Grace & Co. Asbestos PI Trust |
W.R. Grace & Co. |
$2.9 billion |
| DII Industries, LLC Asbestos PI Trust |
Halliburton |
$2.5 billion |
How Does the Trust Fund Claim Process Work?
Filing a claim with an asbestos trust fund involves several key steps:
1. Identifying Eligible Trusts
The first step is determining which trust funds you qualify for based on your exposure history. As our Paul states: “We will help you identify which of these trusts you can go after based on your product exposure.”
This requires a thorough investigation of:
- Where you worked
- Which asbestos products you were exposed to
- When the exposure occurred
- Which companies manufactured those products
2. Gathering Required Documentation
Trust funds require substantial documentation to process claims, including:
- Medical records confirming your diagnosis
- Employment records
- Exposure evidence
- Witness statements
- Military service records (if applicable)
3. Filing Your Claim
Once the appropriate documentation is gathered, claims are submitted to each eligible trust fund. Each trust has its own claim form and submission process.
4. Claim Review and Liquidation
After submission, the trust reviews your claim and determines whether it meets their criteria. Claims are typically processed in one of three ways:
- Expedited Review: Offers a fixed payment amount based on the disease category
- Individual Review: Considers individual circumstances, which may result in higher compensation
- Extraordinary Claim Review: For cases involving unusually high exposure or particularly severe impact
5. Payment Distribution
If approved, the trust distributes payment according to its payment percentage. Most trusts cannot pay 100% of the claim value to ensure funds remain available for future claimants. Current payment percentages typically range from 1% to 100% of the scheduled value, depending on the trust.
Why You Need an Experienced Attorney
Navigating the asbestos trust fund system is complex. Each trust has different:
- Eligibility requirements
- Filing procedures
- Documentation standards
- Deadlines
- Payment schedules
An experienced mesothelioma attorney can:
- Identify all eligible trusts: Many victims qualify for multiple trusts but don’t realize it
- Maximize compensation: As our attorney emphasizes, we “aggressively find out how much you’re entitled to and make sure that we are getting the maximum amount of compensation for you and your family from the asbestos bankruptcy trusts”
- Handle paperwork and procedures: Navigate the complex documentation requirements
- Meet all deadlines: Ensure claims are filed within the required timeframes
- Pursue additional compensation: Determine if you also qualify for litigation against solvent companies
Trust Funds vs. Lawsuits: What’s the Difference?
Asbestos compensation may come through both trust fund claims and lawsuits, but they differ in significant ways:
Trust Fund Claims
- Filed against bankrupt companies
- Generally faster resolution
- Typically lower but more certain compensation
- No court appearances usually required
- Less documentation needed
- Can be filed simultaneously with lawsuits
Lawsuits
- Filed against solvent companies
- Longer timeframe for resolution
- Potentially higher compensation amounts
- May require depositions or court appearances
- More extensive documentation requirements
- Can proceed alongside trust fund claims
Many victims pursue both avenues simultaneously to maximize their total compensation.
Frequently Asked Questions About Asbestos Trust Funds
Can I file a mesothelioma case without an attorney?
While it’s technically possible to file a mesothelioma case without an attorney, it’s strongly advised against. The process is complex, and attempting to file without legal representation can significantly reduce your chances of success and potential compensation.
Why is it difficult to file a mesothelioma case without a lawyer?
There are several reasons:
Hundreds of different trusts and companies are responsible for asbestos poisoning and toxicity.
It’s challenging to identify where exactly you were exposed to asbestos.
The companies involved have their own lawyers, making it nearly impossible for an individual to navigate the legal process alone.
Are there any options for filing a mesothelioma case independently?
There is one trust fund that an individual could potentially file with on their own. However, this approach is not recommended as it may significantly reduce your compensation.
How much compensation might I lose by filing on my own?
If you file independently, you may end up with as little as 25% of what you would receive if lawyers were handling your case.
Have people tried to file mesothelioma cases without attorneys before?
Yes, some clients have attempted to file cases on their own over the years. Unfortunately, these attempts have generally resulted in what legal experts describe as “complete disasters.
What are some sources of asbestos exposure that mesothelioma victims might encounter?
Mesothelioma victims often have multiple exposure sources, including:
– Johns Manville insulation
– Talcum powder
– Asbestos dust from roofs
– Sheetrock (drywall)
Is it in my best interest to try filing a mesothelioma case without an attorney?
No, it’s not in your best interest. While it’s somewhat possible to file on your own, the complexities of the process, the potential for errors, and the likelihood of receiving significantly less compensation make it advisable to seek professional legal representation.
Take Action: Don’t Leave Money on the Table
As Paul emphasizes in the video: “There’s a lot of money in there, and it is a very, very worthwhile endeavor to make sure you get compensated from the trusts.”
If you or a loved one has been diagnosed with mesothelioma or another asbestos-related disease, you likely qualify for compensation from one or more asbestos trust funds. With $32 billion available, these funds represent a significant source of financial support for victims and their families.
At MesotheliomaAttorney.com, we have helped thousands of asbestos victims identify eligible trusts and maximize their compensation. Our experienced attorneys understand the complexities of the trust fund system and will guide you through every step of the process.
Contact us today at 855-680-0452 for a free consultation to learn which asbestos trust funds you may qualify for and how we can help you secure the compensation you deserve.
