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.
Important Facts About Mesothelioma Trust Funds
- Bankrupt asbestos companies have set up trust funds to compensate present and future victims.
- Asbestos trust funds have already paid out billions of dollars in financial compensation.
- These funds still have billions of dollars set aside for people who develop asbestos-related illnesses.
- The United States Congress added a provision to the Bankruptcy Code to allow the creation of special trusts to pay asbestos victims.
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?
Asbestos trust fund payouts can range from around $10,000 to more than $100,000. The amount of compensation from a single trust fund claim varies based 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 31.7%. The trust values mesothelioma claims at $180,000. This means a mesothelioma patient may expect around $57,060 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
Mesothelioma patients and loved ones can reference this extensive list of asbestos trust funds. The list is not exhaustive and is subject to change.
| Asbestos Trust Fund | Created | Initial Funding |
|---|---|---|
| A-Best Asbestos Settlement Trust | 2004 | $18 million |
| A. P. Green Industries Asbestos Trust | 2014 | $333 million |
| ACandS Asbestos Settlement Trust | 2008 | $528 million |
| API, Inc. Asbestos Settlement Trust | 2006 | $94 million |
| Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust | 2006 | $2.06 billion |
| ARTRA Group, Inc. 524(g) Asbestos Trust – Synkoloid Company | 2007 | $74 million |
| ASARCO LLC Asbestos Personal Injury Settlement Trust | 2009 | $830 million |
| Babcock & Wilcox Asbestos Trust | 2006 | $1.85 billion |
| Bondex Trust | 2016 | $797.5 million |
| Burns & Roe Asbestos Personal Injury Settlement Trust | 2009 | $172 million |
| C.E. Thurston & Sons, Inc. Asbestos Trust | 2006 | $53 million |
| Celotex Corporation/ Carey Canada, Inc. Asbestos Settlement Trust | 1997 | $1.25 billion |
| Combustion Engineering 524(g) Asbestos Personal Injury Trust | 2006 | $1.24 billion |
| Congoleum Plan Trust | 2010 | $270 million |
| DII Industries, LLC Asbestos Trust (Halliburton & Harbison Walker) | 2005 | $2.51 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 |
| Flintkote Company and Flintkote Mines Limited Asbestos Personal Injury Trust | 2015 | $214 million |
| Garlock Settlement Facility | 2017 | $480 million |
| General Motors MLC Asbestos Personal Injury Trust | 2012 | $625 million |
| G-I Holdings Inc. Asbestos Settlement Trust | 2009 | $770 million |
| Hercules Chemical Company, Inc. Asbestos Settlement Trust | 2011 | $8.6 million |
| H. K. Porter Asbestos Trust | 1998 | n/a |
| J.T. Thorpe (C.D. Cal.) Settlement Trust | 2006 | $154 million |
| J. T. Thorpe (S.D. Tex.) Company Successor Trust | 2004 | $232 million |
| Kaiser Asbestos Personal Injury Trust | 2006 | $1.22 billion |
| Keene Creditors Trust | 1996 | $45 million |
| Kentile Metex Asbestos Personal Injury Trust | 2015 | $193 million |
| Leslie Controls, Inc. Asbestos Personal Injury Trust | 2011 | $76.6 million |
| Lummus 524(g) Asbestos Personal Injury Trust | 2006 | $38 million |
| MacArthur Co./ Western Asbestos Settlement Trust | 2004 | $2 billion |
| Manville Personal Injury Settlement Trust | 1988 | $2.5 billion |
| Maremont Asbestos Personal Injury Trust | 2019 | $28 million |
| National Gypsum Company Bodily Injury Trust | 1993 | $446 million |
| NMBFiL, Inc. Asbestos Personal Injury Trust – Bondo | 2016 | $2 million |
| Owens Corning / Fibreboard Asbestos Personal Injury Trust – Fibreboard | 2006 | $1.56 billion |
| Owens Corning / Fibreboard Asbestos Personal Injury Trust – Owens Corning | 2006 | $3.42 billion |
| Owens-Illinois, Inc. Paddock Enterprises LLC 524(g) Asbestos Trust | 2022 | $610 million |
| Pittsburgh Corning Corporation Asbestos Personal Injury Trust | 2013 | $3.41 billion |
| Plant Insulation Company Asbestos Settlement Trust | 2012 | $242.8 million |
| Plibrico Asbestos Trust | 2006 | $206 million |
| Pneumo Abex Asbestos Claims Settlement Trust | 2011 | $307.5 million |
| Porter Hayden Bodily Injury Trust | 2006 | <$1 million |
| Quigley Company, Inc. Asbestos Personal Injury Trust | 2013 | $569 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 |
| T. H. Agriculture & Nutrition, LLC Asbestos Personal Injury Trust | 2009 | $901 million |
| Thorpe Insulation Co./ Pacific Insulation Co. Asbestos Personal Injury Settlement Trust | 2006 | $389 million |
| United Gilsonite Laboratories Asbestos Personal Injury Trust | 2014 | $35 million |
| United States Gypsum Asbestos Personal Injury Settlement Trust | 2006 | $3.96 billion |
| United States Mineral Products Company Asbestos Personal Injury Settlement Trust | 2005 | $8 million |
| W.R. Grace & Co. Asbestos Personal Injury Trust | 2014 | $2.98 billion |
| Yarway Asbestos Personal Injury Trust | 2016 | $325 million |
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.
