What Is a Mesothelioma Trust Fund?
Mesothelioma trust funds hold large amounts of money set aside by asbestos companies to compensate asbestos victims. Eligible patients and loved ones can file trust fund claims to receive compensation.
During the past few decades, asbestos companies have faced thousands of lawsuits. Individual victims have received millions of dollars from mesothelioma lawsuit settlements and verdicts. Many companies filed for Chapter 11 bankruptcy protection to handle their asbestos liabilities.
Key Facts About Mesothelioma Trust Funds
- Created under federal law: Congress added Section 524(g) to the U.S. Bankruptcy Code, allowing bankrupt asbestos companies to create special trusts to pay present and future victims.
- Billions paid, billions remain: Asbestos trusts have already paid out billions, with over $30 billion still available for mesothelioma and other asbestos-related disease claims.
- No court required: Asbestos trust claims are handled outside of court. Experienced mesothelioma lawyers guide the claim process and help maximize trust fund compensation.
- Quick turnaround: Claims are typically processed within 3 – 6 months, though some may be completed sooner. Time frames can vary based on case complexity.
- Claims can be filed with multiple trusts: Many victims qualify for compensation from more than one trust.
Companies create trusts as part of bankruptcy reorganization plans. A trust sets aside a certain amount of money to compensate current and future asbestos victims. People may hear them referred to as:
- 524(g) trusts
- Asbestos bankruptcy trust funds
- Asbestos trust funds
- Mesothelioma trust funds
Asbestos use was popular until the 1980s when its dangers became widely known. Many companies knew the health risks of asbestos decades before the general public became aware. But they continued to mine the mineral and use it when manufacturing asbestos-containing materials.
People exposed to asbestos are at risk of developing diseases, such as mesothelioma. Exposure can happen through asbestos product use, occupational exposure and secondary exposure.
Asbestos trust fund compensation can help victims with treatment costs, lost income and other expenses.
Why Were Asbestos Trusts Created?
Asbestos trusts were created to provide compensation to victims of exposure and their loved ones. Trust funds provided companies with a way to handle a large volume of active asbestos claims, as well as future claims.
Many companies filed for bankruptcy in an attempt to manage their liability. Two processes for distressed companies facing high asbestos liabilities are Chapter 7 and Chapter 11 bankruptcy.
“There are over 60 trust funds set up for companies that have reorganized under Chapter 11 bankruptcy to settle their asbestos liabilities. A mesothelioma victim can file a claim with every company’s trust fund whose asbestos products the victim was exposed to. Some of these claims can result in payments of over $100,000 each.”
Lawyer and Legal Advisor
Under Chapter 7 bankruptcy proceedings, a company sells all its assets to pay off creditors. It is also known as a “liquidation bankruptcy.” Under Chapter 11 bankruptcy proceedings, a company restructures its debt with the goal of emerging as a viable company. It is also known as a “reorganization bankruptcy.”
Chapter 7 bankruptcy ends with the termination of the company. A successful Chapter 11 bankruptcy ends with the company still in business. Part of a Chapter 11 bankruptcy plan may involve creating an asbestos trust fund.
Currently, Johns-Manville, National Gypsum Company, Eagle-Picher Corporation and Keene Corporation have the longest standing asbestos trusts. The number of companies establishing trusts continues to grow.
Compensation From Mesothelioma Trust Funds
Asbestos victims and loved ones can file trust fund claims to receive compensation. Trust funds are managed by trustees, who process claims. Payouts depend on several factors, such as disease severity, age and payment percentage.
Payment percentages indicate how much of a claim’s value can be expected from a trust. Trustees apply payment percentages to the value of claims to determine payouts. The percentages are designed to maintain funds for current and future victims. A trustee may adjust a trust’s payment percentage to ensure funds are available for future claimants.
In 2010, the RAND Institute for Civil Justice reported a $126,000 median value for asbestos trust claims for mesothelioma patients. The same report found claim values between $7,000 and $1.2 million across various trusts. A trust’s payment percentage may range from less than 1% to 100% of the value of a claim.
Mesothelioma lawyers can ensure patients meet eligibility requirements for maximum compensation.
Mesothelioma Trust Fund Eligibility Requirements
Eligibility requirements limit the number of individuals who can file asbestos trust fund claims. For example, trusts often require documented proof of exposure and an asbestos-related diagnosis, among other evidence.
Mesothelioma patients and their loved ones can work with an asbestos attorney to meet eligibility requirements. This includes determining appropriate funds to file against. Attorneys at asbestos law firms have experience handling the intricacies of mesothelioma trust fund claims.
How Much Is the Average Asbestos Trust Fund Payout?
Average asbestos trust fund payouts can range from $10,000 to over $100,000, though compensation can be higher for mesothelioma claims. The exact amount depends on several factors. Payment percentage, age, occupation and severity of disease may all affect amounts awarded from mesothelioma trust funds.
An asbestos victim may be able to file claims with a number of trusts. A mesothelioma attorney can help identify potential trusts a patient or family member may have claims against. An attorney can also file the claims on behalf of their clients.
What Is an Asbestos Trust Fund Payment Percentage?
An asbestos trust’s payment percentage indicates how much of a claim’s value a trust will pay. For example, the W.R. Grace trust currently has a payment percentage of 30.1%. The trust values mesothelioma claims at $180,000. This means a mesothelioma patient may expect around $54,180 for a successful trust fund claim.
Trustees may adjust trusts’ payment percentages. These adjustments are made to keep compensation for future claimants available.
Currently, trusts with high payment percentages include:
- North American Refractories Co. (NARCO): 100%
- Halliburton Company: 60%
- Western MacArthur: 51.1%
- J.T. Thorpe Inc.: 50%
Additional factors, such as age and occupation, may further affect a claim’s ultimate payout. These factors may decrease or increase the compensation an individual receives.
How Much Money Is Left in Asbestos Trust Funds?
Overall, around $30 billion is still available in asbestos trust fund money. Individual trusts have begun with as much as several billion dollars in available funds. As they process claims, trustees may adjust payouts accordingly to ensure future claimants are able to receive compensation.
Resources for Mesothelioma Patients
Asbestos Trust Fund List
Billions of dollars remain available through asbestos trust fund payouts for mesothelioma patients and their family members. An experienced mesothelioma attorney can help determine which trusts you may qualify for based on your asbestos exposure history to maximize your financial recovery.
Large Active Asbestos Trust Funds
Below is a list of some of the larger active asbestos bankruptcy trust funds, based on initial funding, payout amounts and the volume of claims filed. These trusts were established by companies that manufactured asbestos products for a range of industries, including construction, utilities and shipbuilding. This list is not exhaustive and may change as new trusts open, existing ones merge or others close.
Small Active Asbestos Trust Funds
Below is a list of some of the smaller active asbestos bankruptcy trust funds, based on initial funding, payout amounts and the volume of claims filed. These trusts were established by companies that manufactured asbestos products for a range of industries, including automotive, insulation and iron and steel. This list is not exhaustive and may change as new trusts open, existing ones merge or others close.
| Small Active Asbestos Trust Funds | Created | Initial Funding |
|---|---|---|
| A. P. Green Industries Asbestos Trust | 2014 | $333 million |
| A-Best Asbestos Settlement Trust | 2004 | $18 million |
| ACandS Asbestos Settlement Trust | 2008 | $528 million |
| API, Inc. Asbestos Settlement Trust | 2006 | $94 million |
| ARTRA Group, Inc. 524(g) Asbestos Trust – Synkoloid Company | 2007 | $74 million |
| C.E. Thurston & Sons, Inc. Asbestos Trust | 2006 | $53 million |
| Celotex Corporation/ Carey Canada, Inc. Asbestos Settlement Trust | 1997 | $1.25 billion |
| Durabla Manufacturing Company and Durabla Canada Ltd. Asbestos Trust | 2012 | $16.2 million |
| Duro Dyne Asbestos Personal Injury Trust | 2020 | $47.4 million |
| Eagle-Picher Industries Personal Injury Settlement Trust | 1996 | $730 million |
| Fairbanks Asbestos Personal Injury Trust | 2023 | |
| Federal-Mogul Asbestos Personal Injury – FMP Subfund | 2007 | $690 million |
| Federal-Mogul Asbestos Personal Injury Trust – Ferodo Subfund | 2011 | $635 million |
| Federal-Mogul Asbestos Personal Injury Trust – Turner & Newall Subfund | 2007 | $635 million |
| Federal-Mogul Asbestos Personal Injury Trust – Flexitallic Subfund | 2011 | $635 million |
| General Motors MLC Asbestos Personal Injury Trust | 2012 | $625 million |
| H. K. Porter Asbestos Trust | 1998 | n/a |
| Hercules Chemical Company, Inc. Asbestos Settlement Trust | 2011 | $8.6 million |
| J. T. Thorpe (S.D. Tex.) Company Successor Trust | 2004 | $232 million |
| Keene Creditors Trust | 1996 | $45 million |
| Leslie Controls, Inc. Asbestos Personal Injury Trust | 2011 | $76.6 million |
| Lummus 524(g) Asbestos Personal Injury Trust | 2006 | $38 million |
| Maremont Asbestos Personal Injury Trust | 2019 | $28 million |
| NMBFiL, Inc. Asbestos Personal Injury Trust – Bondo | 2016 | $2 million |
| Plibrico Asbestos Trust | 2006 | $206 million |
| Porter Hayden Bodily Injury Trust | 2006 | <$1 million |
| Raymark/ Raytech Corporation Asbestos Personal Injury Settlement Trust | 2000 | n/a |
| SEPCO Asbestos Personal Injury Trust | 2020 | $20 million |
| Shook & Fletcher Asbestos Settlement Trust | 2002 | $109 million |
| United States Mineral Products Company Asbestos Personal Injury Settlement Trust | 2005 | $8 million |
Expected Future Asbestos Trusts
As of July 2025, the companies listed below have been involved in asbestos lawsuits and are under growing financial and legal pressure. They may be next to create asbestos trust funds to compensate future claimants.
| Expected Future Trusts | Asbestos Products |
|---|---|
| AVON | Talc-based Cosmetics, Personal Hygiene Products |
| CertainTeed Corporation | Cement, Insulation, Roofing |
| Georgia-Pacific Corporation | Joint Compound |
| Johnson & Johnson | Talcum Powder |
| Ingersoll-Rand Company | HVAC Equipment, Furnaces |
| Nash Engineering | Pumps |
| Trane U.S. Inc. | Air Compressors, Pumps |
How to File an Asbestos Trust Fund Claim
Lawyers can file appropriate asbestos trust fund claims on behalf of clients. Services provided by mesothelioma law firms are designed to make getting compensation as easy as possible for patients and family members. This leaves clients time to focus on treatment and spend time with loved ones.
Step 1: Understanding Trust Fund Criteria
Trust funds have requirements that must be observed by those who wish to process a claim. Mesothelioma lawyers have expertise meeting these requirements. Initially, they will consider factors such as exposure and work history to determine which trusts to file against. Once trusts are identified, lawyers will make sure to follow their specific filing criteria.
Trusts may also have filing time frames. The time frame for filing varies among trusts and may fluctuate depending on the facts of the case. Some trusts adopt relevant state laws called statutes of limitations for filing claims.
Step 2: Gathering Evidence
Mesothelioma lawyers can help gather the evidence needed to file successful claims, including:
- Employment records
- Medical records
- Military records
- Personal records
- Union memberships
- Witness testimony
Step 3: Filing a Trust Claim
After gathering evidence, a lawyer can file the claim with the trust. Claim submission varies among trusts. Some filings may be submitted online or with paper documents. A lawyer will also file any other paperwork, including diagnostic medical records, that an individual trust may require.
Step 4: Review of Trust Claim
Once they receive the filing documents, trust fund administrators begin the claim review process. Claimants are usually given the option to choose between different types of review. In both instances, the payment percentage is still applied.
Asbestos lawyers can determine the best option for review based on victims’ case details.
Step 5: Negotiation and Payment of a Trust Claim
Asbestos lawyers can advocate for the highest compensation for their clients. If a payout is unsatisfactory, lawyers may negotiate for larger payouts or even pursue the trusts through arbitration. Otherwise, lawyers can work with the trust to finalize the claim process and administer the funds.
Filing a Trust Fund Claim vs. Mesothelioma Lawsuit
Mesothelioma patients and family members may be able to seek compensation from multiple sources. In addition to trust fund claims, victims may be able to file mesothelioma lawsuits against non-bankrupt asbestos companies. The government also offers benefits for veterans with duty-related mesothelioma in honor of their service.
Can Asbestos Trust Fund Claims Impact Lawsuits?
An individual may be able to file a lawsuit and claims against multiple trusts. A lawyer can determine the number and type of mesothelioma claims available to their client. In some states, trust fund claims may impact lawsuits.
For example, several states have passed so-called “trust transparency” laws. In general, these laws require victims to disclose trust claims they have made or can make against trusts. In some cases, companies may be able to get trust fund payout amounts deducted from verdicts against them.
Lawyers can develop the best asbestos litigation strategies for securing the highest compensation. For example, they may recommend filing in a state with favorable compensation laws. Victims can ask their lawyers any questions they have about how trust fund claims may impact asbestos lawsuits.
Common Questions About Asbestos Trust Funds
- How many asbestos trust funds are there?
There are currently more than 60 trusts to compensate victims of asbestos exposure. Some asbestos companies are still in the process of creating them as part of their bankruptcy restructuring plans.
- Is there a limit to how many asbestos trust funds I can submit a claim to?
No, there is no limit to the number of trusts an asbestos victim can file with. Eligible claimants can file against the trusts of any companies responsible for their asbestos exposure.
- What fees will be taken out of my trust fund settlement?
Generally, your attorney will receive the same percentage of a trust fund settlement that you agreed to when you retained their services. Some trust funds cap attorney fees.
- How long is the claim review process for asbestos trust compensation?
The claim review process can vary greatly between trusts. Some trusts can take as little as one to two weeks to approve a claim. Many take one to three months and some can take as long as six months to one year. Generally, trusts prioritize the cases of living claimants.
- Are asbestos trust fund payments taxable?
Payments from asbestos trust funds are generally not taxable. But certain laws and regulations may result in taxation for some claims or parts of claims. Mesothelioma lawyers can provide insight into the tax status of your payout.
