Asbestos Trust Funds: How They Work

Asbestos trust funds were created so current and future victims could still receive compensation from companies that went bankrupt after being sued over asbestos exposure. These trusts hold billions of dollars set aside specifically for people diagnosed with mesothelioma and other asbestos‑related diseases. Understanding how asbestos trust funds work can help you or a loved one access money for medical bills, lost income, and other costs.

What asbestos trust funds are

Asbestos trust funds, also called asbestos bankruptcy trusts, are financial accounts created when companies that used asbestos filed for bankruptcy protection. Instead of escaping responsibility completely, many were required by the courts to set aside money in trusts to compensate current and future victims.

These trusts operate separately from the company and are managed by trustees who review claims and pay approved victims according to written rules.

Why asbestos trust funds exist

For decades, asbestos was widely used in construction, shipbuilding, manufacturing, and many other industries. When the health risks became undeniable, companies faced massive lawsuits from workers and families. Some could not afford to pay all claims and filed for bankruptcy.

Bankruptcy courts required many of these companies to create trust funds so that:

• People already sick could be paid
• Money would be preserved for future victims
• The company could reorganize and continue operating in some form

Who can file a trust fund claim?

Generally, you may qualify to file a claim with one or more asbestos trust funds if:

• You have a diagnosis of mesothelioma or another asbestos‑related disease
• You were exposed to asbestos from a product or job site linked to a company that created a trust
• You can provide basic medical and work history evidence

Family members may also file certain claims on behalf of a loved one who has passed away from an asbestos‑related illness.

How asbestos trust funds work step by step

While each trust has its own rules, most follow a similar process:

• 1. Identify eligible trusts: Based on where and how exposure happened, and which companies were involved.
• 2. Collect evidence: Medical records, pathology reports, work history, job site information, and product records.
• 3. File a claim: Submit proof to each trust using its claim form and required documentation.
• 4. Trust review: The trust evaluates your claim under set criteria (often “expedited” or “individual” review).
• 5. Offer and payment: If approved, the trust offers payment based on a scheduled value and payment percentage.

Payment percentages and scheduled values

Trusts do not usually pay 100% of a claim’s “scheduled value.” Instead, they use a payment percentage — often a fraction of the full value — to make sure there is enough money for future claimants.

For example:

• A trust may value a mesothelioma claim at a certain baseline amount
• The payment percentage (for example, 25%) is applied to that value
• The result is the actual payout from that trust

Victims often file with multiple trusts, so total compensation can come from several sources.

Evidence needed for an asbestos trust claim

Most trusts require two main types of proof:

• Medical evidence: Diagnosis of mesothelioma or another asbestos‑related disease, usually documented by a specialist.
• Exposure evidence: Records showing where, when, and how you were exposed to a particular company’s asbestos products or job sites.

This may include employment records, union records, military records, coworker statements, and product or site lists.

Trust fund claims vs. lawsuits

Asbestos trust fund claims are different from lawsuits:

• Claims are handled by the trust, not by a jury or judge
• The process is typically faster and more standardized
• You may still be able to file lawsuits against companies that do not have trusts

Many victims pursue both trust claims and lawsuits with the help of asbestos or mesothelioma attorneys.

Do you need a lawyer for trust fund claims?

While it may be possible to file a claim on your own, many people work with attorneys who focus on asbestos and mesothelioma cases. They:

• Identify all trusts you may qualify for
• Gather work and medical evidence
• Handle filing and follow‑up with each trust
• Coordinate claims with any ongoing lawsuits

FAQ: Asbestos trust funds

How many asbestos trust funds exist?

Dozens of asbestos trust funds have been created by bankrupt companies, and many are still accepting claims.

Can I file with more than one trust?

Yes. If you were exposed to products or job sites linked to multiple companies with trusts, you may file claims with each.

How long does it take to receive payment?

Timeframes vary by trust, but some claims are processed in months, especially under expedited review.

Will trust fund payments affect lawsuits?

Trust payments and lawsuit recoveries are often coordinated. Lawyers can help structure claims to comply with disclosure rules.

Conclusion: A key compensation path for asbestos victims

Asbestos trust funds are a critical source of compensation for people harmed by asbestos exposure — especially when responsible companies have gone through bankruptcy. Understanding how these trusts work, what evidence is needed, and how claims are reviewed can help victims and families pursue the financial support they deserve.