Lump Sum Value of a Structured Settlement
Sunday, January 24th, 2010The general rule of thumb for the lump sum value of a structured settlement is approximately 50% or less of the total value of the settlement payments. For example, if you have a settlement worth $1 million spread out over 10 years, if you were to sell the structured settlement you could expect to receive $500,000 due to the discounting due to the time value of money (obviously, this holds true if you intended to buy structured settlements).