Asbestos Trust Funds: How to File a Claim and Qualify for Compensation
What Asbestos Trust Funds Are
Asbestos trust funds were created under Section 524(g) of the U.S. Bankruptcy Code when major asbestos manufacturers filed for Chapter 11 bankruptcy reorganization. Trusts were funded from bankruptcy assets and are required to pay both current and future asbestos victims. Over 60 trusts currently operate, having collectively paid out more than $20 billion since the first trusts were established.
Identifying Your Qualifying Trusts
The first step is identifying which trusts apply to your exposure history. Each trust compensates victims exposed to its predecessor company's specific products. A former shipyard worker who used products from 12 different bankrupt manufacturers qualifies for 12 separate claims.
Specialized attorneys use product exposure databases — built from decades of prior litigation — to cross-reference your work history against documented product usage at your worksites. This process consistently identifies more qualifying trusts than victims can identify from personal memory.
Documentation Required and Submission Process
Each trust's Trust Distribution Procedures specify required documentation. Standard requirements include: a confirmed mesothelioma pathology report; occupational history establishing exposure to the predecessor company's products; Social Security earnings records; and often co-worker affidavits or employer records.
Your attorney files all qualifying trust claims simultaneously to ensure parallel processing. Most trusts offer expedited review for mesothelioma claims meeting all documentary requirements — typically processing within 6 to 12 months.
How Payment Amounts Are Calculated
Each trust sets a 'scheduled value' for mesothelioma — always the highest disease category. The trust pays each claim at a 'payment percentage' reflecting its ability to pay all current and future claims while remaining solvent. A trust with a $400,000 scheduled value and 25% payment percentage pays $100,000 per approved claim. A victim with 8 qualifying trusts at varying values and percentages might receive $600,000 to $1.5 million in aggregate trust compensation.
Frequently Asked Questions
Yes. Trust fund claims and civil lawsuits target different entities and operate through separate processes. Filing one does not preclude the other. Your attorney coordinates both to maximize total recovery, managing any disclosure requirements that civil litigation may impose regarding trust fund claims filed.
Yes — even trusts paying 5% to 10% can produce meaningful compensation when the scheduled value is high. Filing costs are minimal and the process is handled by your attorney. Every qualifying trust should be claimed; the incremental effort to add additional claims is small relative to the additional compensation.
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