Mesothelioma Trust Funds: What You Need to Know

Understanding Asbestos Trust Funds

Mesothelioma trust funds, also known as asbestos bankruptcy trusts, were established to compensate victims of asbestos-related diseases when the companies responsible for their exposure filed for bankruptcy. These trusts were created through the bankruptcy reorganization process to ensure that funds would be available for current and future claimants.

When asbestos companies faced overwhelming litigation due to the health hazards of their products, many sought bankruptcy protection. As part of this process, courts required these companies to establish trust funds to pay current and future asbestos claims. This system ensures that victims can receive compensation even when the responsible companies are no longer in business or have limited assets.

History and Purpose of Asbestos Trust Funds

The first asbestos trust fund was established in 1988 for the Johns-Manville Corporation, once the largest producer of asbestos-containing products in the U.S. This set a precedent for how other asbestos companies would handle their liabilities through bankruptcy reorganization.

The primary purpose of these trust funds is to ensure that compensation is available for victims while allowing companies to reorganize and continue operations. Without this system, many asbestos companies would have liquidated entirely, leaving victims with no source of compensation.

How Trust Funds Work

Each asbestos trust fund operates independently with its own set of guidelines, payment percentages, and procedures. However, they all follow a similar basic structure:

• Trust Documents: Each trust has governing documents that outline eligibility requirements, payment percentages, and claims processing procedures
• Trustees: Independent trustees manage each fund and make decisions about claims
• Payment Percentage: Most trusts pay a fixed percentage of each claim's value to preserve funds for future claimants
• Expedited Review: Most offers offer expedited review for claims that meet certain criteria
• Individual Review: Claims that don't qualify for expedited review or where claimants seek higher compensation can request individual review

Major Mesothelioma Trust Funds

While there are over 60 active asbestos trust funds, some of the largest and most well-known include:

Eligibility Requirements for Trust Fund Claims

Each trust fund has specific eligibility requirements, but most follow similar guidelines:

Requirement	Description	Documentation Needed
Medical Diagnosis	Proof of an asbestos-related disease such as mesothelioma, lung cancer, or asbestosis	Pathology reports, doctor's statements, medical records
Exposure Evidence	Proof of exposure to asbestos-containing products from the specific company	Employment records, witness affidavits, product identification
Statute of Limitations	Claim must be filed within the time limits set by the trust	Varies by trust but typically 1-3 years from diagnosis
Product Identification	Evidence linking exposure to specific products from the trust's company	Work history, product documentation, witness statements

The Trust Fund Claims Process

Filing a claim with an asbestos trust fund involves several steps. While the exact process varies by trust, most follow a similar pattern:

Payment Percentages and Compensation Amounts

One of the most important concepts to understand about asbestos trust funds is payment percentages. Because trust funds have limited resources and must provide for future claimants, they typically pay a percentage of each claim's value rather than the full amount.

Payment percentages vary by trust and may change over time as the trust's financial situation evolves. Current payment percentages range from 1% to 100% of a claim's value, with most falling between 10% and 25%.

Trust Funds vs. Lawsuits: Key Differences

While both trust fund claims and lawsuits can provide compensation for mesothelioma victims, there are important differences between these two approaches:

Aspect	Trust Fund Claims	Lawsuits
Process	Administrative claim process	Legal proceedings in court
Timeframe	Typically 3-6 months	Typically 12-18 months
Proof Required	Generally less rigorous evidence requirements	Higher burden of proof
Payment Amount	Fixed percentage of claim value	Potentially higher, determined by settlement or verdict
Defendant	Bankrupt companies	Solvent companies