What is an asbestos trust fund?
An asbestos trust fund is money set aside by a company that went through bankruptcy because of asbestos lawsuits. Instead of disappearing, the company was required to fund a trust that pays current and future victims. The first major trust was created in 1988 for Johns-Manville, once one of the largest asbestos manufacturers in the country.
In 1994, Congress added Section 524(g) to the U.S. Bankruptcy Code, creating a formal process for these trusts. Since then, dozens of companies — including many well-known insulation, building-material, and industrial manufacturers — have set up trusts. Together, the active trusts are estimated to hold more than $30 billion.
Even if the company that made the asbestos products you were exposed to no longer exists, its trust may still be paying claims today.
Who can file a trust fund claim?
- People diagnosed with mesothelioma, asbestos-related lung cancer, asbestosis, or other qualifying asbestos diseases
- People who can show exposure to a specific company's asbestos products
- Family members or estate representatives of someone who has passed away
Each trust has its own rules — called trust distribution procedures — that list the diseases it accepts, the medical evidence required, and the job sites and products it covers.
How a trust fund claim works
- Identify the trusts
Your legal team matches your work history to the products and job sites each trust covers. Many people qualify for multiple trusts.
- Gather evidence
Medical records confirm the diagnosis. Work records, testimony, or co-worker statements document exposure.
- Submit the claim
Claims are filed with each trust, usually electronically. No courtroom is involved.
- Review
Trusts review claims either through a faster expedited review with set values or a more detailed individual review.
- Payment
Approved claims are paid based on the trust's scheduled value and its current payment percentage.
How much do asbestos trusts pay?
Each trust assigns a scheduled value to each disease and then pays a payment percentage of that value, so the trust can stay funded for future claimants. Payment percentages vary widely from trust to trust and can change over time.
Because most people were exposed to products from several companies, a single person may receive payments from multiple trusts. The total depends on the diagnosis, the strength of the exposure evidence, and which trusts apply. No one can guarantee a specific amount.
Expedited review
Faster processing for claims that meet a trust's standard criteria, paid at a set value.
Individual review
A closer look for unusual or stronger cases. Takes longer but may result in a different value.
Trust funds vs. lawsuits
| Trust fund claim | Lawsuit | |
|---|---|---|
| Who pays | Bankrupt company's trust | Companies still in business |
| Court involved | No | Yes (most settle before trial) |
| Typical timing | Often months | Often 1–2 years, sometimes faster |
| Can you do both? | Yes | Yes |
Filing a trust claim does not stop you from filing a lawsuit against other responsible companies, and vice versa. Most people with mesothelioma pursue both.
Each trust sets its own filing deadline, which may differ from your state's statute of limitations. Learn about deadlines →
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