How Asbestos Trust Funds Work
If you live in Chicago, you don’t have to look far to find buildings and job sites with long histories. Unfortunately, some of these older structures carry an unwelcome legacy: asbestos.
For decades, workers across the city, from union laborers on the South Side to electricians rehabbing century-old homes in Lincoln Park, were exposed without ever being told what was at stake. And when someone develops mesothelioma or another asbestos-related illness, the financial fallout can hit as hard as the diagnosis itself.
This is where asbestos trust funds can help those affected. They compensate people harmed by asbestos exposure when the companies responsible have gone bankrupt. Here is what you need to know about how asbestos trust funds work to make the system less intimidating for you.
Asbestos Exposure in Chicago
Unfortunately, many generations of workers in the Windy City built careers in trades with high exposure rates. Many local cases tie back to:
- High-rise construction and renovation
- Union trades, such as pipefitters, electricians, laborers, or HVAC technicians
- Manufacturing
- Auto shops and mechanical work
- Rail yards and industrial facilities
These worksites and trades that kept the city also exposed workers to many hazards. Decades later, these workers and their families are dealing with the consequences. And they have a right to seek compensation from an asbestos trust fund.
Why Do These Trust Funds Exist?
Back in the mid- to late-1900s, companies used asbestos in everything from insulation to construction materials to brake linings. When lawsuits started piling up from workers who were exposed, many of those companies faced massive liability.
Some filed for Chapter 11 bankruptcy to reorganize. Under federal law, if they wanted to move forward, they had to create asbestos trust funds to pay present and future victims.
Today, more than 60 active trusts exist across the country. Not every Chicago claim goes to the same trust. It depends on which companies made or supplied the asbestos products that caused the exposure. For someone who worked in a Loop high-rise boiler room in the ’70s, the trust might look different from that of a mechanic who spent years at an auto shop in Cicero.
What These Funds Pay For
The purpose of a trust fund is to provide families with financial stability after a devastating diagnosis. Most payouts cover things like:
- Medical treatment
- Lost income
- Travel to specialists
- At-home support
- End-of-life expenses
For families suddenly buried in medical bills and decisions they never expected to face, this is a lifeline.
How a Claim Gets Filed
A trust fund claim is not like filing a standard lawsuit. With this, you submit evidence of your diagnosis, documentation of your work history, and proof that you were exposed to a specific company’s asbestos-containing product.
Lawyers who handle these claims know the trust requirements inside and out. This is important in a city like Chicago, where exposure often happened at multiple job sites over decades.
Trusts do not require you to go to court, testify, or deal with confrontations. Everything happens through paperwork, medical records, and documentation. Since many victims are already going through physical and emotional turmoil, the low-stress nature of the process makes a world of difference.
Scheduled Values and Payout Percentages
Every trust publishes a scheduled value. This is a baseline number for specific conditions, such as mesothelioma, lung cancer, or asbestosis. Unfortunately, you will not get the full scheduled value.
Trusts use a payment percentage. Since trusts need to make sure funds last for future claimants, they pay out only a portion of that scheduled value. The percentage varies widely. Some trusts pay 20%, while others pay 10% or less.
So, if a trust has a scheduled value of $200,000 for mesothelioma and a 25% payout percentage, a claimant will receive $50,000.
How Long Does It All Take?
Most trust claims move faster than lawsuits. Some get resolved in a matter of months. For others, it may take longer if multiple trusts are involved or if documentation takes time to track down. Some workers moved between job sites, so tracking down records can be a bit of detective work.
When you have an asbestos diagnosis, this is an overwhelming time for you and your family. The trust fund process is really about removing financial pressure so families can focus on treatment and time together.
At Schweickert Ganassin Krzak Rundio, LLP, we are here to assist with that process. We can help determine if you qualify for money from the trust fund or seek alternative forms of compensation.
Our neighbors, union members, and local tradespeople deserve support when companies fail to protect them. And we are here to guide you through this difficult time.
