How Much Money Is in the Trusts

Trust funds were built during bankruptcy from cash, insurance policies and sometimes stock in the reorganized company. Some trusts also earn investment income over time. Because each trust was formed from one company's assets and insurance, the amount available varies a lot. A trust formed from a large manufacturer with strong insurance coverage may be in a very different position than one formed from a smaller distributor. This is one reason a family's total trust recovery depends so heavily on which companies' products were at their job sites, not just on the diagnosis itself.

Mesothelioma can appear many decades after exposure, so trustees know that people who worked around asbestos long ago are still being diagnosed. A trust that paid every current claim in full could run dry and leave nothing for someone diagnosed later. To prevent that, trusts estimate how many claims they expect in the years ahead and set payments to stretch the money. Those estimates are reviewed and updated. When a trust's projections change, its payments can change too. That planning is the reason trusts do not simply pay the full listed value of every claim that comes in.

Many trusts file annual reports with the bankruptcy court that describe their assets, the number of claims received and the amounts paid. These reports are public, though they can be dense. For most families, the practical takeaway is simpler: a trust's current payment percentage tells you more about what a claim may pay than its total assets do. If you want to understand where a particular trust stands, an attorney who files trust claims regularly will usually be following those reports and any changes to payment rules, and can explain what they mean for your situation.

1. 1

   Ask which specific trusts your claim would be filed with, rather than focusing on the total size of the trust system.

2. 2

   Request an explanation of each trust's current payment percentage before estimating what a claim might pay.

3. 3

   File as soon as your evidence is ready, since payment terms can change over time.

4. 4

   Keep a simple list of each trust, the claim number and any payment updates you receive.