How Asbestos Trust Funds Work
When asbestos companies faced overwhelming lawsuits from workers and families harmed by their products, many filed for bankruptcy protection. Under Section 524(g) of the U.S. Bankruptcy Code, these companies were required to establish trust funds specifically to compensate current and future asbestos disease victims.
Each trust operates independently with its own claims criteria, payment schedules, and processing timelines. The key facts every patient and family should know:
- Trust fund claims are separate from lawsuits. You can file trust fund claims AND pursue a lawsuit against solvent companies simultaneously.
- You may be eligible for multiple trusts. Most mesothelioma patients were exposed to asbestos products from several companies over their working career. An experienced attorney identifies all eligible trusts based on your specific exposure history.
- No court appearance is required. Trust fund claims are administrative — paperwork is filed directly with each trust.
- Payment percentages vary. Each trust pays a percentage of the claim value, adjusted periodically to preserve assets for future claimants. Higher percentages mean the trust is better funded relative to its claims volume.
- An attorney significantly increases recovery. Attorneys know which trusts to file with and how to document claims for maximum approval. Mesothelioma attorneys work on contingency — you pay nothing unless you receive compensation.