Asbestos Trust Funds: How to File a Claim and Get Compensation

What Are Asbestos Trust Funds?

Asbestos trust funds are financial reserves established by companies that manufactured, sold, or used asbestos-containing products and subsequently filed for bankruptcy. As part of their bankruptcy reorganization, these companies were required to create trust funds to compensate current and future asbestos disease victims. More than 60 asbestos trust funds exist today, holding an estimated $30 billion or more in remaining assets.

These trusts were created under Section 524(g) of the U.S. Bankruptcy Code, which allows companies to resolve their asbestos liabilities through a trust mechanism rather than individual lawsuits. Each trust operates independently with its own criteria, payment percentages, and claims procedures. Filing a trust fund claim is separate from — and can be done in addition to — filing a personal injury lawsuit against non-bankrupt defendants.

Major Asbestos Trust Funds and Average Payouts

The largest asbestos trust funds include the Manville Personal Injury Settlement Trust (Johns-Manville Corporation, one of the largest asbestos producers in history), the USG Corporation Asbestos Personal Injury Settlement Trust, the Owens Corning/Fibreboard Asbestos Personal Injury Trust, the W.R. Grace Asbestos Personal Injury Trust, and the Armstrong World Industries Asbestos Personal Injury Settlement Trust.

Payment amounts vary significantly by trust and by the severity of your disease. Mesothelioma claims — classified as the most severe asbestos-related disease — receive the highest scheduled values from virtually all trusts. Scheduled values for mesothelioma claims range from approximately $30,000 to over $400,000 per trust, though most trusts pay a percentage of the scheduled value based on their remaining assets. Common payment percentages range from 5% to 25% of the scheduled value, though some trusts pay higher percentages.

How to File an Asbestos Trust Fund Claim

Filing a trust fund claim involves several steps. First, you must establish that you have a qualifying asbestos-related disease, supported by medical documentation including pathology reports, imaging studies, and your treating physician's diagnosis. Second, you must demonstrate exposure to asbestos products made by the company that established the trust, typically through work history records, product identification, and witness statements.

Most trust funds offer two filing options: an expedited review process with a predetermined payment amount based on disease category, and an individual review process where you submit detailed evidence of your specific damages for a potentially higher payment. Expedited review is faster but results in a fixed payment. Individual review takes longer but can yield significantly more compensation if your damages exceed the scheduled amount.

An experienced mesothelioma attorney can identify every trust fund for which you qualify — many victims were exposed to asbestos products from multiple manufacturers and can file claims with multiple trusts simultaneously. Filing with 5 to 10 or more trusts is common in mesothelioma cases.

Timeline and Important Considerations

Expedited review claims are typically processed within 3 to 6 months. Individual review claims may take 6 to 18 months. Many trusts allow claims to be filed by surviving family members if the victim has passed away.

Critically, trust fund claims do not prevent you from also filing a lawsuit against non-bankrupt defendants. An experienced attorney will pursue both avenues simultaneously to maximize your total compensation. Some defendants in active lawsuits may argue that your trust fund recoveries should offset their liability — your attorney will structure your claims strategically to minimize this impact.

Statutes of limitations apply to trust fund claims just as they do to lawsuits. The clock typically starts running from the date of diagnosis. Do not delay in consulting an attorney, as waiting too long can permanently forfeit your right to file.