The Genesis of Asbestos Trusts Many companies that produced or used asbestos-containing materials faced a wave of lawsuits as the public became aware of the severe health risks, like mesothelioma and asbestosis. To manage these mounting claims and continue operating, some of these companies turned to the U.S. Bankruptcy Code. This legal avenue allowed them to reorganize and, crucially, establish asbestos trust funds. These trusts were designed to handle all current and future claims related to asbestos exposure from that company’s products. The creation of these trusts effectively shifted liability away from the company and onto the trust itself. This process, while…