What’s the Difference Between an Asbestos Lawsuit and a Trust Fund Claim?

– Updated on May 17, 2025

There are several differences between an asbestos lawsuit and a trust fund claim. These differences pertain to the process, what you can recover, and how quickly you might get your funds.

How Asbestos Lawsuits and Trust Fund Claims Differ from Each Other

Before we discuss the differences between these two methods of recovering compensation, we should first explain what an asbestos trust fund claim is.

Manufacturers created these trust funds in the 1980s after countless workers filed asbestos claims and lawsuits against these companies. These companies then declared bankruptcy to limit the money they had to pay out to those who suffered harm due to asbestos exposure. However, the courts required that the manufacturers create these funds to ensure that people sickened by asbestos exposure were still able to recover compensation. As of May 2025, dozens of these trust funds remain active, with approximately $30 billion available for claims.

There are several differences between these asbestos lawsuits and asbestos trust fund claims, including:

The Trust Fund System Is Non-Adversarial

One big difference between an asbestos lawsuit and an asbestos trust fund claim is that an asbestos trust fund claim’s administrative process is supposed to be “non-adversarial,” according to Congress.gov. It should also remain “independent of the court system,” which a lawsuit does not do.

These trusts are managed by a trustee who is supposed to “manage the trust for the sole benefit of the present and future claimant beneficiaries.”

The representative who reviews your or your loved one’s medical records and work history should not be looking for something that would allow them to deny your claim or pay less than you need.

The trust fund claims representative should be working with you to find a mutually agreeable result, not attempting to get you to do or say something that would jeopardize your right to compensation. For example, in an asbestos lawsuit, the defense team would likely review your medical history to see if you smoked. If they found out you did, they would use this information against you, claiming that your lung cancer is due to smoking cigarettes instead of asbestos exposure.

Each Trust Fund May Have Its Own Process

Asbestos trust funds are privately managed. Each trust can also create its own claim review process, unlike a lawsuit, which typically has a similar process, depending on who you are suing.

This can complicate things for you as you won’t know what to expect. However, if you have an asbestos lung cancer attorney handle the process on your behalf, all you need to focus on is your recovery. They will know the process, what to expect, and how to get you what you need.

Trust Fund Claims Are Often Quicker

There are two routes you can take in a trust fund claim:

• Individual: A trustee reviews an individual claim independently, which often takes more time but can lead to a higher award.
• Expedited: A trustee reviews a group of claims for a faster result with a fixed result.

It can take a few weeks or months to receive a decision from a trust fund claim, while an asbestos lawsuit can take several months or even years.

You May Recover Different Amounts of Compensation With Each Option

With a lawsuit, you can negotiate for a fair settlement or present your case in court and hope the jury awards you everything you have lost.

With a trust fund claim, you are assigned a percentage (between 1.1 and 100 percent), determining how much you recover. This varies depending on:

• Your ailment
• The trust from which you are seeking compensation
• The availability of compensation within the trust
• Any present and expected future claims against the trust

Once the trustee has assigned your percentage, they will offer your payment. For example, if you are eligible for $350,000 in damages, and the trustee assigns you 25%, you can recover $87,500. Your lawyer will be able to explain what to expect during this process.

Similarities Between Asbestos Lawsuits and Trust Fund Claims

Both asbestos lawsuits and trust fund claims allow people sickened by asbestos exposure to recover part or all of the compensation they need. Both require the claimant/plaintiff to establish their asbestos exposure. Here is one more important similarity that you should be aware of.

Deadlines Differ With Both Processes

Each state has a statute of limitations for filing an injury lawsuit. Statutes of limitations across the country range from one to six years. If you fail to file your lawsuit before this time limit expires, you may be unable to recover compensation.

Trust funds also have their own deadlines that you need to abide by.

We recommend that you get in touch with our team as soon as possible so that we can match you with one of our law firm partners. They will manage all deadlines to ensure you protect your right to recover compensation.

Qualifying for an Asbestos Lawsuit or a Trust Fund Claim

You may be able to file an asbestos trust fund claim or lawsuit if you:

• Were diagnosed with lung cancer via biopsy, cytology, fine needle aspiration, lobectomy, or another pathological method, or mesothelioma via a tissue biopsy or cytology.
• You worked in an industrial, mechanical, construction, shipyard, shipbuilding, or another related industry.

Your attorney can help you determine if you qualify and establish your case.

Get Help Today With Your Asbestos Trust Fund Claim or Lawsuit

You have enough on your plate. You don’t need to add a claim or lawsuit to your to-do list. The Goldwater Law Firm is here to help. We have dedicated over two decades to fighting for people injured by corporate negligence. We’d be honored to help you, too. We only partner with law firms that share this dedication.

Call today for a free consultation. We can match you with an attorney in your area who can handle your case with no upfront fees.