Asbestos trust funds were set up by bankrupt companies for mesothelioma survivors. They were established by companies that produced, manufactured, and distributed asbestos-containing products, and were intended to provide compensation for future suits. It is estimated that the current amount in the trust funds ranges from $25 billion to $30 billion or more. The average asbestos trust fund payout is typically between $7,000 to as high as $1.2 million. A trusted mesothelioma lawyer can help you get started.
An asbestos trust fund, also known as an asbestos compensation trust fund, is a legally established fund set up by companies that were in the production, manufacture, or distribution of asbestos-containing products. These trusts compensate individuals who develop asbestos-related diseases, such as mesothelioma, lung cancer, or asbestosis from exposure to asbestos products associated with these companies.
Many companies heavily involved in the asbestos industry filed for bankruptcy due to the overwhelming number of asbestos-related lawsuits and the substantial financial liabilities they faced. Bankruptcy filings allow these companies to establish trust funds to manage asbestos-related claims while protecting their remaining assets.
The compensation awarded from asbestos trust funds can vary depending on several factors, including the severity of the asbestos-related disease, the claimant’s exposure history, and the specific trust’s funding level. Compensation amounts can range from a few thousand dollars to several million dollars.
It’s important to note that there are multiple asbestos trust funds established by different companies, and each trust fund may have its own eligibility criteria and procedures.
Individuals who believe they have asbestos-related illnesses or have lost loved ones due to asbestos exposure should consult an experienced Chicago asbestos lawyer to assess their eligibility for compensation and navigate the claims process effectively.
Asbestos trust funds were created to address the mounting lawsuits companies faced over asbestos exposure. The companies filed for bankruptcy, and as a condition of their Chapter 11 filings, they were required to establish mesothelioma trust funds to manage current and future claims. The first asbestos trust was established by Johns-Manville in 1988 with $2.5 billion set aside.
The trust funds continue to be created – in 2021 Duro Dyne Asbestos Trust Fund began accepting and paying out claims.
Facts About Asbestos Trust Funds
Those who were directly exposed to asbestos and have developed a qualifying asbestos-related disease (such as mesothelioma, lung cancer, and asbestosis) may be eligible to submit an asbestos bankruptcy trust fund claim. Individuals who were victims of secondhand exposure may also be eligible to file a claim.
Those eligible to file an asbestos trust fund claim include:
Those who have mesothelioma or are responsible for the estate of a mesothelioma victim may be eligible to file claims with more than one asbestos trust fund.
A time limit (statute of limitations) exists for asbestos trust fund claims. Courts have established time frames that vary from state to state. Some things to discuss with your lawyer include:
Asbestos trust fund payouts are generally kept private. The range of payouts is $7,000 to $1.2 million, with a median of $180,000. Some experts have suggested the average individual payout is $300,000 to $400,000.
Many factors impact the amount of an asbestos trust fund payout, including:
Each trust has assigned a claim value to mesothelioma, lung cancer, or asbestosis. Mesothelioma claims receive the highest amount of compensation.
While the average amount people receive from asbestos trust funds is significantly less than a lawsuit settlement, it is often a faster way to receive compensation without going to court.
At this time, it is estimated that more than $30 billion remains. In 2016, about $25 billion remained in the asbestos trust funds, though the exact amount is difficult to calculate. Several new trusts have been formed in the past few years, increasing the amount available for claims.
The trust funds have a set payment percentage set aside for future claims. The rate is regularly evaluated to ensure sufficient funds remain for future claims. For example, if a claim is worth $200,000, the trust’s payment percentage is 25%, meaning the payout would be $50,000 for that trust fund.
Many companies have established asbestos trust funds, including Johns-Manville, W.R. Grace, and US Gypsum. These companies were at the forefront of asbestos use and manufactured thousands of products containing asbestos.
Some of the asbestos trust funds include:
Filing a claim with an asbestos trust fund involves several steps:
It is important to note that each trust has its own procedures and requirements. Working with mesothelioma attorneys experienced in asbestos litigation can help navigate the claim process and ensure that all necessary documentation is prepared and submitted accurately.
Filing a mesothelioma lawsuit is much different than filing an asbestos trust fund claim. Trust fund claims are generally quicker to resolve because the process is more streamlined, but they also result in lower compensation. The trust fund’s administration is different from the company’s.
The asbestos trust funds are also different than VA benefit claims. Veterans with a qualifying diagnosis can file for both. VA benefits claims are not legal claims and are benefits provided to those who served in the armed forces.
The key differences between a mesothelioma lawsuit and an asbestos trust fund claim are that trust fund claims operate outside the courts, and payouts range from $7,000 to $1.2 million.
How are asbestos trust funds created?
Asbestos trust funds are usually established during Chapter 11 bankruptcy proceedings. The trusts are expected to hold sufficient funds to cover future claims.