For decades, asbestos was widely used in construction, manufacturing, and industrial settings—despite its known health risks. As lawsuits mounted against companies responsible for asbestos exposure, many filed for bankruptcy and were required to establish asbestos trust funds to compensate victims. These funds now serve as a vital source of financial relief for individuals diagnosed with mesothelioma, lung cancer, and other asbestos-related diseases. This article explains how asbestos trust funds work, who qualifies, and how to apply for compensation.
What Are Asbestos Trust Funds?
Asbestos trust funds are legal entities created during bankruptcy proceedings to ensure that companies can continue compensating victims even after going out of business. These trusts are:
- Court-supervised and governed by federal bankruptcy law
- Funded by the assets of bankrupt asbestos companies
- Managed by independent trustees
- Designed to pay current and future claims fairly
There are currently more than 60 active asbestos trust funds in the United States, with billions of dollars available for eligible claimants.
Why Trust Funds Were Created
The creation of trust funds was driven by the overwhelming number of lawsuits filed against asbestos manufacturers and distributors. To avoid complete financial collapse, companies filed for Chapter 11 bankruptcy and negotiated settlements that included:
- Establishing trust funds to handle future claims
- Protecting the company from further litigation
- Ensuring victims still had access to compensation
This system allows victims to receive payouts without going through lengthy court battles.
Who Qualifies for Asbestos Trust Fund Compensation
Eligibility varies by trust, but most require proof of:
- Diagnosis: Medical documentation confirming mesothelioma, lung cancer, or another asbestos-related illness
- Exposure: Evidence that the claimant was exposed to asbestos-containing products made or distributed by the company
- Timing: Exposure must have occurred during the company’s period of asbestos use
- Work history: Employment records showing the claimant worked at a job site or in an industry linked to the company
Some trusts also allow claims for secondary exposure, such as family members who were exposed through contaminated clothing or household contact.
Types of Diseases Covered
Most asbestos trust funds compensate victims diagnosed with:
- Malignant mesothelioma
- Lung cancer
- Asbestosis
- Pleural thickening
- Other cancers linked to asbestos exposure
Each disease is assigned a payment value based on severity, life expectancy, and medical costs.
How to Apply for Compensation
Applying to an asbestos trust fund involves several steps:
1. Identify Eligible Trusts
Victims may qualify for multiple trust funds if they were exposed to products from different companies. Attorneys can help:
- Review employment and exposure history
- Match companies to corresponding trust funds
- Maximize compensation by filing multiple claims
2. Gather Documentation
Required documents typically include:
- Medical records confirming diagnosis
- Employment history and job site details
- Product identification or witness statements
- Proof of exposure dates and locations
Accurate and complete documentation is critical to avoid delays or denials.
3. Choose a Review Process
Most trusts offer two types of claim review:
- Expedited Review: Faster processing with fixed payment amounts
- Individual Review: Longer process with potential for higher compensation based on unique circumstances
Claimants can choose the option that best fits their needs and goals.
4. Submit the Claim
Claims are submitted directly to the trust fund, either online or through legal counsel. The trust will:
- Review the documentation
- Verify eligibility
- Issue a payment offer or request additional information
Processing times vary but typically range from a few months to a year.
5. Receive Compensation
Once approved, the trust fund issues payment. Some funds apply payment percentages, meaning claimants receive a portion of the full value to preserve funds for future victims.
For example, a $100,000 claim may be paid at 25%, resulting in a $25,000 payout.
Role of Attorneys in Trust Fund Claims
Mesothelioma attorneys play a vital role in navigating the trust fund system. They:
- Identify all eligible trusts
- Prepare and submit claims
- Ensure documentation meets trust requirements
- Appeal denied claims or negotiate higher payouts
- Coordinate trust fund claims with lawsuits against solvent companies
Most attorneys work on a contingency basis, meaning families pay nothing unless compensation is awarded.
Real-Life Example
A retired shipyard worker diagnosed with mesothelioma qualified for five different trust funds. His legal team:
- Documented exposure to insulation, gaskets, and cement products
- Filed claims with Johns-Manville, Owens Corning, and other trusts
- Secured a combined payout of $850,000
This case illustrates how strategic filing can lead to substantial compensation.
Tips for Filing a Successful Claim
To improve your chances of success:
- Act quickly: Trusts have deadlines and statutes of limitations.
- Be thorough: Include all relevant medical and employment records.
- Consult an attorney: Legal guidance ensures accuracy and maximizes payouts.
- Explore multiple trusts: Exposure to different products may qualify for multiple claims.
- Stay organized: Keep copies of all documents and correspondence.
Preparation and persistence are key to securing compensation.
Final Thoughts
Asbestos trust funds offer a lifeline to victims of mesothelioma and other asbestos-related diseases. While the process can be complex, it’s also highly effective—especially with the help of experienced legal counsel. By understanding eligibility requirements, gathering strong documentation, and filing strategically, families can access the financial support they need to cover medical expenses, lost income, and emotional suffering.
References
- American Cancer Society. (2023). Malignant mesothelioma. https://www.cancer.org/cancer/malignant-mesothelioma.html
- Environmental Protection Agency. (2023). Asbestos laws and regulations. https://www.epa.gov/asbestos/asbestos-laws-and-regulations
- Occupational Safety and Health Administration. (2023). Asbestos. https://www.osha.gov/asbestos
- United States Courts. (2023). Bankruptcy basics. https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics
- RAND Corporation. (2010). Asbestos bankruptcy trust system: An overview. https://www.rand.org/pubs/technical_reports/TR872.html
