ASBESTOS TRUST FUNDS

Notable companies that have filed for Chapter 11 bankruptcy:

• 1982 – Johns-Manville
• 1989 – Raytech (Raybestos-Manhattan)
• 2000 – Owens Corning
• 2001 – W.R. Grace

• • W.R. Grace - WRG Asbestos Personal Injury Trust
  • Owens Corning - Owens Corning Fibreboard Asbestos Personal Injury Trust
  • Kaiser Aluminum - Kaiser Asbestos Personal Injury Trust
  • U.S. Gypsum Company (USG) - United States Gypsum Asbestos Personal Injury Settlement Trust
  • Armstrong World Industries - Asbestos Personal Injury Settlement Trust
  • Federal-Mogul Corporation - Federal Mogul U.S. Asbestos Personal Injury
  • Johns-Manville Corporation - Manville Personal Injury Trust Settlement

1. Submitting the Claim: When the a victim of exposure first submits a claim, he or she has the option of choosing an expedited review or an individual review. During an expedited review, the trust audits any supporting documentation and either approves or denies the claim. If the trust approves the claim, it makes makes a payment based on a predetermined ‘disease level.’

Each disease level corresponds to a certain amount of compensation that’s ultimately determined by each company’s trust. Asbestos trusts use disease levels to ensure that the limited pool of money in the trust is paid out fairly.

The most severe asbestos-related diseases usually receive the highest compensation. Asbestos-related diseases are rated from level 1 to level 8. Mesothelioma is rated the highest at level 8.

If the trust denies a claim for an expedited review, the claimant can file for an individual review. An individual review can actually be more beneficial than an expedited review because applicants can challenge the payout amount that the trust initially offered them. Claimants with mesothelioma can possibly receive more than the pre-determined amount assigned to their disease level by filing for an individual review.

2. Being Evaluated: Once a claim is submitted, it enters the trust’s processing line, which is first in, first out (FIFO). This means that claimants who file sooner are evaluated and compensated first.

The trust may request more information or check court records filed with other trusts while they review the claim. They also sometimes ask for additional documents to make sure that a false claim isn’t being filed. Taking steps to ensure that claims are legitimate helps keep money available for victims of asbestos diseases who truly deserve compensation.

3. Receiving Payment: If the claim is approved, the trust makes a payment offer, which is usually a percentage of the compensation amount allotted to each disease level. Trusts do this to ensure that they have enough money left to pay claimants in the future. Different trusts may use varying payment percentages.

If you’re a victim of occupational asbestos exposure, our team can help you understand how these percentages work and get you the compensation you deserve. Contact a member of our Patient Help Team for more information about asbestos trust funds.

Should You Use an Asbestos Lawyer When Filing an Asbestos Trust Fund Claim?

While you’re not required to have an attorney to file a claim, these claims can be complicated to navigate on your own. So, it’s always a good idea to get a lawyer involved with specific expertise in asbestos litigation. 

A mesothelioma lawyer will help you understand your legal options, relevant state laws, the review process, and more. These lawyers are familiar with the intricacies of each fund and can work with you to identify the best routes toward financial compensation. We suggest meeting with a mesothelioma law firm before starting your asbestos litigation to receive financial compensation.

Asbestos trusts must file an annual report that shows how many claims were submitted and how much compensation was paid out. According to a review published by the Government Accountability Office, as of 2011 the total amount of compensation asbestos trusts have paid out to claimants amounts to over $13.5 billion.

There is over $18 billion in available compensation that has not yet been paid out by asbestos trust funds.

The amount of asbestos-related compensation available through trust funds will actually rise in the near future by an estimated $12 billion. This increase is a result of more and more at-fault companies completing the bankruptcy process.

Asbestos Trust Fund FAQs

Is a mesothelioma attorney required to make a trust fund claim?

You’re not required to have an attorney to file a mesothelioma trust fund claim. However, since these claims can be complicated to navigate on your own, it’s always a good idea to consult with a mesothelioma law firm before you start the process.

Is there a time limit in which a mesothelioma victim can receive an asbestos trust fund payout?

Mesothelioma trust funds have statutes of limitation, which are limits on the amount of time between when a victim is diagnosed with or passed away from mesothelioma, and when they or a family member filed a claim. These limitations are generally 1-3 years but vary by state and trust. 

Do people who have asbestos-related illnesses other than mesothelioma qualify for a trust fund claim?

Individuals diagnosed with asbestos-related diseases other than mesothelioma may still qualify for a trust fund claim, but compensation varies depending on the type of asbestos-related disease diagnosed. 

Can a family member or loved one make an asbestos trust fund claim for a mesothelioma patient?

Family members who have lost a loved one to an asbestos-related disease, including mesothelioma, are eligible to file an asbestos trust fund claim. These claims may include wrongful death claims.