Case guide

UPDATED FEB 2026

Asbestos Trust Funds — How They Work

Part of the Asbestos / Mesothelioma investigation

The short answer

Over $30 billion in asbestos trust funds has been established by more than 60 bankrupt asbestos manufacturers. Filing trust claims does not require a lawsuit and can proceed simultaneously with civil litigation.

An experienced mesothelioma attorney identifies all applicable trusts and files simultaneously, often producing $200K-$800K in trust distributions.

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How Asbestos Trust Funds Were Created

When major asbestos manufacturers could no longer sustain the volume of asbestos injury lawsuits filed against them, they sought protection under Chapter 11 of the U.S. Bankruptcy Code. As a condition of bankruptcy reorganization, they were required to establish permanently funded asbestos personal injury settlement trusts under Bankruptcy Code Section 524(g). These trusts are funded with billions of dollars in assets — cash, securities, and future payments — and are administered by independent trustees who process claims according to published Trust Distribution Procedures (TDPs). The trusts established by the largest manufacturers include Johns Manville Personal Injury Settlement Trust, Owens Corning/Fibreboard Asbestos Personal Injury Trust, W.R. Grace & Co. Asbestos PI Trust, Armstrong World Industries Asbestos PI Settlement Trust, Pittsburgh Corning Asbestos PI Settlement Trust, Combustion Engineering 524(g) Trust, and dozens of others.

Filing a Trust Fund Claim

Each trust has its own claim form and eligibility criteria, but all require: medical documentation confirming a qualifying diagnosis (mesothelioma, lung cancer, or asbestosis), exposure evidence connecting the claimant to that specific trust's product, and documentation of the exposure site and time period. An experienced mesothelioma attorney maintains databases of historical asbestos products, job sites, and product usage patterns that help identify which trusts are applicable. Most trusts offer an Expedited Review (ER) process for mesothelioma claimants with an individual review option for higher-value claims. Payment is calculated as a percentage of the scheduled value for the disease category — payment percentages vary widely by trust's financial health.

Key data

Data & Statistics

2 SOURCED FIGURES

60+ asbestos manufacturer trusts totaling $30+ billion established

RAND Asbestos Litigation Report 2024

Average mesothelioma claimant qualifies for 5-15 different trust funds

Mesothelioma Applied Research Foundation

FAQ

Frequently Asked Questions

12 QUESTIONS

Mesothelioma is a cancer of the mesothelium — the thin membrane lining the lungs (pleura), abdomen (peritoneum), or heart (pericardium). It is distinct from lung cancer, which originates in the lung tissue itself. Mesothelioma is caused almost exclusively by asbestos exposure and does not arise from smoking. Lung cancer, while also caused by asbestos in some cases, is far more commonly caused by tobacco smoking. Both are compensable through asbestos trust funds and litigation, but mesothelioma claims typically produce higher compensation because the disease is more directly and singularly attributable to asbestos.

Dive deeper

Related Guides

19 GUIDES

The full investigation

Part of the Asbestos / Mesothelioma Investigation