How Asbestos Trust Funds Work
When an asbestos manufacturer files for bankruptcy, they cannot simply discharge asbestos liability. Courts require companies to establish dedicated trusts funded with assets, stocks, insurance proceeds, and future contributions to compensate current and future victims. These trusts operate independently under court supervision, with their own claim procedures and payment schedules.
Trust fund claims are administrative, not lawsuits. You do not sue the trust; you submit a claim form with supporting documentation. Claims are typically processed in 3–12 months. You can file trust fund claims and pursue a separate lawsuit against solvent defendants at the same time.
Major Asbestos Trusts and Payment Percentages
Each trust sets a “payment percentage” — the fraction of each claim’s scheduled value that it actually pays, to ensure the trust can compensate all future claimants. Payment percentages vary widely:
| Trust | Company | Payment % | Mesothelioma Value |
|---|---|---|---|
| Manville Personal Injury Settlement Trust | Johns-Manville | 5% | ~$180,000 scheduled |
| Pittsburgh Corning Trust | Pittsburgh Corning (Unibestos) | 35% | ~$280,000 |
| Owens Corning / Fibreboard Trust | Owens Corning (Kaylo) | 20% | ~$210,000 |
| Armstrong World Industries Trust | Armstrong Insulation | 25% | ~$200,000 |
| WR Grace Trust | W.R. Grace (Zonolite) | 25% | ~$250,000 |
| Combustion Engineering Trust | Combustion Engineering | 100% | ~$300,000 |
| Babcock & Wilcox Trust | Babcock & Wilcox | 100% | ~$200,000 |
| Eagle-Picher Trust | Eagle-Picher Industries | 30% | ~$150,000 |
| Garlock Sealing Trust | Garlock Sealing Technologies | TBD | Being established |
| Celotex Trust | Celotex Corporation | 35% | ~$175,000 |
| Halliburton/DII Trust | Brown & Root / Dresser | 100% | ~$275,000 |
| US Gypsum Trust | United States Gypsum | 35% | ~$90,000 |
Values are approximate and change as payment percentages are adjusted. Your attorney will determine which specific trusts apply to your exposure history and calculate current scheduled values.
How to File a Trust Fund Claim
- Exposure confirmation: Your attorney establishes which manufacturers’ products you were exposed to, based on your work history and facility records
- Medical documentation: Confirmed mesothelioma diagnosis, pathology reports, and medical records are compiled
- Claim forms: Attorney submits claim packages to each applicable trust following each trust’s specific procedures
- Review: Each trust reviews the claim (3–12 months typically)
- Payment: Trust pays the claim at the applicable payment percentage
Multiple trust claims proceed simultaneously. An experienced mesothelioma law firm typically has databases of which products were present at thousands of industrial sites across the country, allowing rapid identification of applicable trusts even when the claimant doesn’t remember specific product names.
Trust Funds vs. Lawsuits: Can You Do Both?
Yes. Trust fund claims and lawsuits target different defendants. Trust funds are for companies that have already gone bankrupt; lawsuits are filed against companies that are still solvent. Pursuing one does not affect the other, and both can proceed simultaneously. An experienced mesothelioma attorney manages both processes as part of comprehensive case representation.