Asbestos Trust Funds
Asbestos trust funds are put in place because companies have gone bankrupt from previous asbestos lawsuits. The funds are secured for future claims from employees who have also been negatively impacted by asbestos exposure at the same company.
What Are Asbestos Trust Funds?
Asbestos trust funds were created to provide compensation for people who developed serious health conditions after being exposed to asbestos on the job. Asbestos, once widely used in construction for its fire-resistant and durable qualities, was later found to be highly toxic. For decades, it was a common ingredient in building materials and industrial products—until medical evidence revealed a direct link between asbestos exposure and diseases like lung cancer, pleural mesothelioma, and asbestosis.
As these health risks became undeniable, most uses of asbestos were banned. Many companies that had exposed workers to asbestos dust faced legal action and, under the weight of mounting lawsuits, filed for bankruptcy. As part of their bankruptcy proceedings, these companies were required to establish asbestos trust funds. These funds are designed to ensure that individuals diagnosed with asbestos-related illnesses can still receive financial compensation, even years or decades after exposure. Filing a claim with one of these trust funds is often the most direct way for affected individuals and their families to pursue justice and receive support for medical expenses, lost income, and other damages.
Trust Fund Payouts and Occupational Exposure
Laws and regulations put in place after the mineral was discovered toxic to human health put accountability in the hands of the asbestos-contaminated building owner, manager, or contractor. It’s their responsibility to establish the adequate removal of pollutants from the structure before allowing employees to work there. If this doesn’t happen, the employee gets exposed and develops an illness, they could file an occupational exposure legal claim and seek legal compensation. The responsible company can then get in legal trouble for negligence and have these claims go on their record.
Who Can File an Asbestos Trust Fund Claim?
Anyone who was exposed to asbestos while on the job and has developed lung cancer or other illness can be eligible for compensation from an asbestos trust fund. It also depends on whether the asbestos company has a trust fund set up in the first place. The person filing a claim must also be able to prove that exposure happened during their occupation with said company. There is also a statute of limitations (time limit) on how long the patient has to file. This timer usually begins after an official medical diagnosis of illness but tends to differ with each state.
Asbestos Trust Fund Claim VS Lung Cancer Lawsuit
These two legal terms are related but different. Asbestos trust fund claims are settled lawsuits with pre-planned compensation. The compensation is gathered from specific funds put in place by liable companies who went bankrupt from previous related lawsuits. A lung cancer lawsuit is more general and can involve a personal injury and wrongful death claim that doesn’t involve asbestos trust funds. If the company hasn’t gone bankrupt or had any asbestos claims in the past, they probably won’t have trust funds put in place. If the company was recently found liable, they may have to pay from current funds.
How to File a Claim for Asbestos Trust Funds
Filing a claim with an asbestos trust fund requires time-sensitive documentation and a solid understanding of legal requirements. An experienced asbestos attorney can help you navigate the process and increase your chances of receiving the maximum payout. Here’s how the process works:
1. Establish Eligibility: Before anything else, you’ll need to figure out if you’re eligible to file a claim. Every state has its own rules about deadlines, who qualifies, and how payouts are handled. This part can get complicated, but a finding a good asbestos attorney will walk you through the requirements and make sure everything lines up.
2. Gather Supporting Documentation: Next, it’s time to pull together all the details that back up your claim. This includes medical records, proof of asbestos exposure, information about your work history, and possibly statements from coworkers or supervisors. It might sound like a lot, but attorneys who specialize in these cases can help track everything down and organize it the right way.
3. File the Claim: Once your paperwork is ready, your attorney will file the claim with the asbestos trust fund. At this point, you’ll choose between two options: an expedited review or an individual review. The expedited route is faster and gives you a set payout based on your diagnosis, but you can’t negotiate the amount. An individual review takes longer but offers a more personalized evaluation, which could result in a higher payout depending on your specific situation.
4. Await Claim Review and Payout Proposal: After the claim is filed, you’ll wait for it to be reviewed. If you went with the expedited review, the process usually moves more quickly because the criteria are already predefined. Individual reviews take more time since they involve a detailed look at your case.
5. Negotiate the Payout (If Applicable): If you chose the individual review path, there’s a chance to negotiate your payout. Your attorney can handle this for you, using the specifics of your case to push for a better settlement. If you chose expedited review, though, the payout is fixed and can’t be adjusted. If you have legal questions, your attorney can help you get the answers you seek.
For more information, fill out a free case evaluation form today.
How Much Is the Average Payout for Asbestos Trust Funds?
On average, the value for claims from asbestos trust funds vary. It can go anywhere from $7,000 to $1.2 million across the 30 trust-claim-class combinations but the average is $180,000. It’s important to note that most trusts are running out of money and won’t have enough to fully pay every claim. To combat this, these companies set payment percentages of the amount they actually pay, the net payment. Trust claim-class reporting says that the average payment percentage offered is about 25% or $45,000 net when the percentage is taken from the $180,000 gross average.
Talk to an Asbestos Lawyer and Mesothelioma Legal Expert
Navigating a legal claim for asbestos trust funds can be overwhelming, especially if you or a loved one has been diagnosed with lung cancer or another asbestos-related illness. The legal process can be complex, and dealing with severe symptoms can make it even more challenging. That’s where an experienced asbestos attorney comes in. They can handle the details of your case, ensuring the process runs smoothly while you focus on your health and recovery. If you or someone you care about has developed lung cancer due to occupational asbestos exposure, don’t navigate this journey alone. Reach out for a free case evaluation today and take the first step toward getting the compensation you deserve.
