If a Trust Runs Low on Funds

Trustees regularly compare their assets with the number of claims they expect in coming years. If the numbers suggest money will not last as planned, they may reduce the payment percentage. They might also make other procedural changes permitted under the trust's governing documents. These decisions generally involve advisers and, in some cases, oversight from representatives of current and future claimants. Changes are typically announced, and the trust's procedures explain which claims are affected. The aim is to treat present and future claimants fairly with the money available.

If a trust lowers its percentage, claims processed under the new rate usually receive less than they would have under the old one. Whether a pending claim is affected depends on the trust's specific rules about timing. A trust facing difficulties generally still reviews and pays claims, just at a reduced level. It does not mean the claim was wrong or that it will be denied. Families with claims pending before several trusts should remember that one trust's changes do not necessarily affect the others.

No family can control a trust's finances, but a complete and timely filing reduces the time a claim spends pending while terms may change. It also helps to file with every trust that fits the work history, since recoveries are spread across multiple sources rather than resting on one. Staying in touch with your attorney about trust announcements lets you understand how any changes apply to you. Most importantly, avoid delaying a ready claim while waiting to see what happens, since conditions could just as easily become less favorable as more favorable.

1. 1

   Ask whether any trust you are filing with has recently announced payment changes.

2. 2

   Submit complete claims promptly once medical and exposure evidence is ready.

3. 3

   Make sure every trust that matches your work history is included, not just the largest.

4. 4

   Keep any trust notices and ask your attorney how each change affects a pending claim.