How Are Asbestos Trust Funds Set Up?
Many companies that used asbestos eventually filed for bankruptcy protection because of the high costs of lawsuits. Victims cannot file lawsuits against one of these bankrupt companies; instead, they must file for compensation through trust funds.
- Bankruptcy: Setting up an asbestos trust begins with a company filing for bankruptcy. Bankruptcy protects companies from lawsuits but does not exempt them from compensating victims. Bankruptcy courts require these companies to provide plans for how they will reorganize and how they will set up trust funds.
- Estimating fund amounts: Asbestos trust funds payout both current and future claims. As funds are established, the courts approve the amounts used to fund them. These must include an estimate for future needs. That estimate ensures adequate funds remain for both current and future claimants.
- Bankruptcy court approval: The decisions about trust funds must be made before a bankruptcy plan can be approved. The court allows the plaintiffs’ representatives to weigh in and help make the final decision on funding amounts. Both sides estimate how much money is needed in the trust fund. The amount should be enough to pay all existing claims as well as those made in the future.
To file a valid claim for compensation from an asbestos trust fund, you must meet and prove certain criteria:
- Documentation showing you have been diagnosed with an asbestos-related illness
- A physician statement that confirms the diagnosis
- Evidence of the location at which you experienced asbestos exposure
- Medical records showing that exposure led to your illness
Will There Be Enough Trust Fund Money for Future Claims?
Asbestos Funds Currently Contain about $30 Billion Dollars.
It can be comforting to know that you can rely on the money in asbestos trust funds if you do get sick decades after the exposure. It can take many years for the symptoms to become obvious and for the disease to develop and lead to a diagnosis. The funds were created to meet these future needs.
If you were exposed to asbestos, you may be lucky enough to never develop a related illness. You will always face an increased risk, though. You may need that trust fund money in the future. You will have the same right to it as those who claim it now.
