Asbestos Trust Fund Claims: How to File and What You Can Recover

What Are Asbestos Trust Funds?

Asbestos trust funds — also called asbestos bankruptcy trusts — were established by asbestos manufacturers and distributors that were forced into bankruptcy after being overwhelmed by mesothelioma and asbestos disease lawsuits. When these companies filed for bankruptcy protection, federal courts required them to set aside substantial sums of money — often in the billions of dollars — to compensate current and future victims before reorganizing or liquidating.

This arrangement was designed to ensure that companies couldn't simply use bankruptcy to avoid their obligations to asbestos victims. As a result, even though these companies are no longer operating, their trust funds continue to pay claims decades later. There are currently more than 60 active asbestos trust funds in the United States, holding more than $30 billion in combined assets.

Some of the largest and most well-known asbestos trust funds include those established by Johns-Manville, Armstrong World Industries, Owens Corning, W.R. Grace, and dozens of other companies that used asbestos extensively in their products.

Who Is Eligible to File a Trust Fund Claim?

To file a claim with an asbestos trust fund, you generally must:

• Have been diagnosed with mesothelioma, lung cancer, asbestosis, or another asbestos-related disease
• Have documented exposure to the specific company's asbestos-containing products
• Meet the trust's medical criteria (different trusts may have different requirements)
• File within the trust's deadlines and statute of limitations requirements

A mesothelioma attorney can review your work history and medical records to determine which trusts you may be eligible to file with. Many patients who worked in industries such as shipbuilding, construction, or manufacturing were exposed to products from multiple companies — making them potentially eligible to file with several trusts simultaneously.

How Trust Fund Claims Work

The process for filing a trust fund claim differs from filing a lawsuit in several important ways. Trust funds operate under their own administrative procedures — called Trust Distribution Procedures (TDPs) — which specify what evidence is needed, how claims are evaluated, and how payments are calculated.

Here is a general overview of how the process works:

Step 1: Document your exposure. Your attorney will gather your employment records, Social Security earnings statements, union records, and other documents that confirm you worked with or around the specific company's asbestos products.

Step 2: Gather your medical documentation. A copy of your mesothelioma diagnosis — including pathology reports and physician records — is required by every trust.

Step 3: Identify applicable trusts. Your attorney will research which trusts are associated with the products you were exposed to and determine your eligibility for each.

Step 4: Submit the claims. Your attorney submits formal claim packages to each eligible trust. Many trusts can be filed with simultaneously.

Step 5: Receive payment. Trusts review claims and process payments according to their TDPs. Some trusts offer "expedited review" for patients with mesothelioma — the most serious asbestos-related disease — which can speed up payment significantly.

How Much Can You Recover from Trust Funds?

Each trust has its own payment schedule based on disease type, exposure history, and the trust's available assets. Mesothelioma — recognized as the most serious asbestos-caused disease — typically qualifies for the highest payment level at each trust.

Individual trust payments for mesothelioma victims typically range from $7,000 to $200,000 per trust. However, because many victims can file with multiple trusts, total trust fund compensation can accumulate to $500,000, $1 million, or more when claims are filed with multiple applicable trusts.

Importantly, trust fund payments are in addition to — not instead of — any lawsuit settlements or verdicts you may receive. Filing trust claims and pursuing litigation are separate, parallel processes, and receiving payment from a trust does not reduce what you may recover in a lawsuit against solvent defendants.

Trust Fund Claims vs. Lawsuits: Key Differences

Many mesothelioma victims pursue both trust fund claims and lawsuits simultaneously. Here is how they compare:

Frequently Asked Questions