How to calculate the present value of a structured settlement?
The present value of your structured settlement is very important to know, as it will dictate the amount of lump sum payment your settlement will be qualified for. While the formula can be readily found, it is recommended to use a calculator that has been set up to accept your numbers and do the figuring for you.
In order to begin this process, you will need a copy of your structured settlement order, and you may need to get in contact with a professional if you have questions on what some of the numbers mean under your circumstances. The important thing to understand, is that the present value of your settlement is looking at what your settlement will be valued at in the future, as this is when your buyer can expect to be paid.
Unfortunately, money today has a lower value in the future, so all this will need to be considered when using a calculator to define your settlements worth.