Asbestos Trust Funds
Asbestos trust funds are put in place because companies have gone bankrupt from previous asbestos lawsuits. The funds are secured for future claims from employees who have also been negatively impacted by asbestos exposure at the same company.
Mesothelioma and Asbestos Trust Funds
Asbestos companies created trust funds to compensate people who developed life-threatening health conditions after being exposed to asbestos on the job. These trusts were set up as part of bankruptcy proceedings when companies could no longer sustain the legal claims related to asbestos-related diseases. Many companies used asbestos before they fully understood its health risks. When it became clear that exposure to asbestos fibers caused serious health risks such as mesothelioma, thousands of victims and their families filed lawsuits seeking compensation for the damages it caused.
If you or a loved one was diagnosed with mesothelioma, understanding asbestos trust funds is crucial as they grant victims and their families financial relief to help with medical costs, lost income, and other expenses related to their illness. As an advocate for all lung health, the Lung Cancer Center is here to help you understand the basics of an asbestos trust fund, walk you through the key steps you need to take to file a claim, and connect you with the support you need to secure the compensation you deserve.
Types of Asbestos Company Bankruptcies
When asbestos liability forces a company into bankruptcy, it typically occurs under Chapter 11, which allows the business to reorganize and continue operations while resolving claims. As part of this process, many companies establish asbestos trust funds to ensure ongoing compensation for current and future victims. These trust funds are often a key avenue for mesothelioma patients to seek financial relief without having to file a traditional lawsuit.
Major corporations such as Owens Corning and Armstrong World Industries have used Chapter 11 bankruptcy to create dedicated trust funds, which continue to pay out claims today. These funds are managed independently and are designed to streamline compensation for individuals harmed by asbestos exposure.
While some smaller companies may have undergone Chapter 7 liquidation, where business operations cease entirely, these situations are less common, and options may still be available depending on the circumstances. Because each case is unique, it’s critical to speak with an attorney who understands the complex legal and financial landscape surrounding asbestos claims.
How to File a Claim for Asbestos Trust Funds
Filing a claim with an asbestos trust fund requires time-sensitive documentation and a thorough understanding of legal requirements. An experienced asbestos attorney can help you navigate the process and increase your chances of receiving a favorable outcome.
Step 1: Determine Eligibility
Before anything else, you’ll need to figure out if you’re eligible to file a claim. Every state has its own rules regarding deadlines, eligibility criteria, and payout handling. This part can get complicated, but finding an experienced asbestos attorney will guide you through the requirements and ensure everything aligns.
Step 2: Gather Documentation
Next, gather all supporting documents to back up your claim. Documentation can include medical records, proof of asbestos exposure, employment history, and personal statements. This step can be challenging to do alone, but with the help of an asbestos attorney, you can easily locate and organize all the necessary documents.
Step 3: Submit Your Claim
Once your paperwork is ready, your legal partners can help you fill out the claim form for the specific asbestos trust funds you are eligible for. Each trust has its own form and process. For example, some trusts allow online submission, while others require you to mail physical documents. Be sure to follow all instructions carefully and keep copies of all documents you submit.
Step 4: Understand the Timeline and What to Expect
After your claim is filed, you’ll wait for the trust fund administrators to review it. If needed, they may request additional information or clarification on the documents you submitted. This step can take several months, depending on the complexity of your case and the number of claims filed with the trust.
Asbestos Trust Funds Compensation for Exposure
The amount of compensation received varies by trust and individual cases. The recovery can range from $7,000 to $1.2 million, with an average of $180,000. It’s important to note that most trusts are running out of funds and won’t have enough to cover every claim fully. To combat this, companies set payment percentages based on the amount they pay.
Working with an asbestos attorney can help you identify all eligible trusts and help you present your claim in the strongest way possible. They can also compare asbestos trust fund payouts to compensation amounts from asbestos lawsuits based on your case. Trust fund settlements are faster and ideal for those in need of instant financial relief, but asbestos lawsuits can offer higher compensation amounts.
List of Asbestos Trust Funds
There are currently over 60 active asbestos trust funds in the United States. Combined, these trusts hold billions of dollars of financial relief for those suffering from mesothelioma, lung cancer, asbestosis, and other asbestos-related diseases. Some of the most well-known asbestos trust funds include the Johns-Manville Trust, the Owens Corning/Fibreboard Trust, the Armstrong World Industries Trust, and the United States Gypsum Trust. These trusts vary in size and payout percentage, and many victims are eligible to file with multiple funds based on their exposure history.
What Happens If a Defendant Company Does Not Have an Established Asbestos Trust Fund?
In the cases when a defendant company does not have an established asbestos trust fund, victims may have additional options for pursuing compensation, such as filing a traditional asbestos lawsuit. These claims may end in higher payouts than a trust, but they often take longer. Veterans exposed to asbestos during military service also have the option to file for VA benefits, including monthly compensation and healthcare support. Other legal options include class action lawsuits, settlements through multi-district litigation, or filing against insurance carriers.
Financial Assistance for Mesothelioma Victims
In addition to legal claims, some patients may qualify for other forms of financial support. For instance, Social Security Disability Insurance (SSDI) may be available to those who are unable to work due to their diagnosis. Certain nonprofit and state-run programs also offer supplemental assistance, such as travel grants, caregiver support, or housing aid, for individuals affected by asbestos-related diseases.
However, navigating these options can be overwhelming, especially while managing a mesothelioma diagnosis. That’s why it’s so important to speak with a qualified attorney who understands the full landscape of financial relief and can prioritize the path most likely to result in meaningful compensation for you and your family.
If you or someone you love has been diagnosed with mesothelioma or asbestos-related lung cancer, our team is here to help. Contact us today for a free case evaluation and let us fight for the justice and compensation you deserve.
