Mesothelioma and Asbestos Trust Funds

Asbestos trust funds compensate mesothelioma victims and their loved ones.  Many negligent asbestos companies created trust funds after they filed for bankruptcy. These trust funds are meant to pay out current and future asbestos claims. More than $30 billion is set aside across more than 65 trust funds.

Asbestos Trust Funds: Compensation for Mesothelioma

Mesothelioma trust funds, also known as “asbestos trust funds” and “asbestos bankruptcy trust funds,” were created to provide current and future compensation for mesothelioma victims and others who have become ill due to asbestos exposure.

Specifically, these trust funds enable eligible individuals and their loved ones to receive money from companies that have obtained Chapter 11 bankruptcy protection. Chapter 11 bankruptcy allows negligent asbestos companies to reorganize and remain in business.  

An experienced asbestos attorney can provide you with a list of asbestos bankruptcy trusts and assist you in navigating the trust fund process.

Who Can File a Mesothelioma Trust Fund Claim?

Eligible people able to submit a trust fund claim include the following:

• Workers exposed to asbestos by their employer
• Individuals who used asbestos-containing products
• Families who lost a loved one due to asbestos exposure

Below, we will discuss many funds available to the people harmed by asbestos exposure.

Compensation from Asbestos Trust Funds

Monetary compensation depends on many different factors, such as:

• A confirmed diagnosis of an asbestos-related disease
• The payment schedule that the trust initially created
• The current percentage of payment set for each trust

Certain types of asbestos-related diseases are eligible for more compensation.  For example, Mealey’s Asbestos Bankruptcy report provides that some individuals diagnosed with mesothelioma have received six future compensation awards from asbestos trust funds.  

A schedule assigns specific claim values to each type of asbestos-related illness. Each fund has a different schedule. The scheduled values are based on how much money the negligent company paid to asbestos claimants before filing for bankruptcy.

According to research by the Rand Corporation, the scheduled value for mesothelioma claims across all trusts is between $7,000 and $1.2 million, with a median value of $180,000.  

How Much Money Remains in Mesothelioma Trust Funds?

The amount of money in a trust fund varies by company. However, there are about 65 active mesothelioma trust funds with an estimated $30 billion available to claimants.

These trusts have paid out about $20 billion since the late 1980s. This estimate includes approximately $15 billion that was paid out between 2006 and 2012.

Regardless of the above, asbestos victims may have concerns that asbestos trust funds will be depleted and as such, stop making payments.

This concern arises out of the following:

• Asbestos companies are no longer in operation
• The number of asbestos victims and trust claims continues to increase
• Some asbestos companies put as little funds into their trusts as possible
• Bankruptcy proceedings based initial monetary amounts on estimates that were too low

An example of an underfunded trust is the Johns-Manville Trust, which began with $2.5 billion and has had to cease making payments on two different occasions. Highly skilled asbestos lawyers can assist victims and their families in receiving the highest amount of compensation possible by finding all possible ways to expand eligibility. 

How Asbestos Trust Fund Payment Percentages Work

Asbestos trust funds offer a set percentage of a claim’s value to save funds for future claimants. For instance – using a median value of $150,000 for asbestos claims – if the trust’s payment percentage is 25 percent, the payout would be $37,500. This amount may be sufficient enough to cover an asbestos victim’s medical bills and lost income.

The payment percentage is not always the same. It can change based on the number of claims the trust has budgeted for versus the number of claims it receives. If a trust fund payment percentage increases, those paid in the past at a lower percentage will receive additional funds to make up the difference. 

On the other hand, if a payment percentage decreases, individuals previously paid at a higher percentage will keep the entire original payment. This is why mesothelioma victims need to submit a claim with any applicable asbestos trust funds as soon as possible.

List of Mesothelioma and Asbestos Trust Funds

Many asbestos companies created trust funds, including WR Grace, Johns Manville, and United States Gypsum. Below is a list of trust funds that are available in the United States. Keep in mind that this list does not contain all of the funds available and is subject to change.

Asbestos Trust Funds: How to Get Compensated Quickly

There are many steps to submit an asbestos trust fund claim, including satisfying the fund’s criteria and gathering information. These steps are as follows:

Step 1: Satisfy Asbestos Trust Fund Criteria

Each fund has different criteria that a person must meet to file a claim. The criteria are outlined on the website of each trust fund. The criteria include the following:

• When exposure to asbestos occurred
• Where the exposure occurred
• Evidence of an asbestos-related diagnosis
• Statute of limitations stating the time limit that applies in filing a claim
• Evidence or information about the asbestos products the claimant was exposed to

This may seem overwhelming, however, an experienced mesothelioma lawyer can help you meet the applicable fund’s criteria.

Step 2: Gather Evidence to Support Your Claim

The evidence necessary to file a trust fund claim typically includes the following:

• Site of exposure – evidence confirming asbestos exposure, which may include employment records, witness affidavits, and invoices.
• Patient’s diagnosis – medical documents showing an asbestos-related diagnosis such as imaging scans and a pathology report.
• Physician statement – a statement drafted by a qualified physician, such as an oncologist or doctor.
• Asbestos involvement – medical documents describing the extent to which asbestos caused the claimant’s asbestos-related disease.

A mesothelioma attorney can help you collect the required information to support your claim.

Step 3:  Submit Your Asbestos-Related Claim

Once your lawyer has collected all of the relevant evidence, they will submit it to a fund according to its protocols. Most mesothelioma trusts accept claims through their website, while others may require a printed claim submitted to them through the mail.

Step 4: Your Claim is Examined for Approval

Trust administrators will examine the evidence submitted with your claim. They usually review the evidence in one of two of the following ways:

• Individual review – Your claim will be individually examined. This process takes longer than an expedited review (discussed below). Several factors are considered through an individual review such as how many dependents the claimant has and the extent of the asbestos-related disease. The amount of payment could be lower or higher than the fixed amount provided with an expedited review.
• Expedited review – The claim will be included with other claims based on the asbestos-related diagnosis. This enables trust administrators to more quickly examine all of the claims. An expedited review is associated with a fixed payment. The payment is usually received faster than the payment from an individual review.

Considerations Before Filing a Claim

When seeking to file a trust fund claim, it is important to consider the following:

• State laws – the federal government allows states to form their asbestos legislation. Specifically, state laws provide for how trust compensation affects the determination of lawsuit awards.
• Statute of limitations – a claim must be filed within a certain time limit set by each trust. This is also called the deadline to file. The statute of limitations for asbestos trusts is typically two to three years after a mesothelioma diagnosis or death.
• Filing multiple lawsuits and claims – in some instances, claimants can submit fund claims and asbestos-related lawsuits simultaneously. Many state laws require claimants to provide information about other claims they may have submitted in the past.  
• Setoffs – if a person already received a trust fund payment, the defendant(s) they sue may deduct the amount of that payment from the court’s award. Some states, such as Texas, New York, Illinois, and West Virginia, may permit setoffs for payments made by trusts.
• Information sharing – state courts have different legal requirements about sharing trust claim information with defendants in lawsuits. Some courts require the disclosure of any trust fund claims submitted to trusts during the discovery step of a lawsuit.

Mesothelioma Trust Fund Claims Versus VA Claims and Lawsuits

There are many ways asbestos payments and their families can obtain compensation. In addition to an asbestos trust fund claim, mesothelioma victims can pursue a mesothelioma lawsuit or Veterans’ Affairs (VA) benefits (if applicable). The following are the differences between these types of claims.

Asbestos lawsuit

The important characteristics of an asbestos lawsuit include: 

• Victims file a claim against asbestos companies due to wrongful exposure
• The plaintiff and the defendant may settle to avoid further legal proceedings
• Claimants may pursue a lawsuit verdict if the case makes it to trial
• Lawsuits may take more time, but they are often associated with a larger award

Trust Fund Claims

The major differences between a trust fund and a lawsuit or VA claim include: 

• Victims submit a claim against a certain asbestos trust fund
• Monetary payouts are subject to trust fund percentages
• Claims must be reviewed and approved
• Claims must qualify for trust fund eligibility requirements 

VA claims 

Technically, VA claims are not legal claims. However, they provide health care and compensation to veterans of the United States armed forces and their families.  

Commonly Asked Questions About Mesothelioma Trust Funds

Mesothelioma trust funds offer a critical financial lifeline for victims of asbestos exposure. With billions of dollars set aside, these funds can help cover medical expenses, lost wages, and more. Below are answers to some of the most frequently asked questions about how these trust funds work, who qualifies, and the steps involved in filing a claim.

If you or a loved one has been affected by asbestos exposure, contact us for a free case review. Our team is available 24/7 to guide you through the claims process and help you secure the compensation you deserve.