Methodology · Settlement Valuation
Settlement valuation methodology
Reviewed by Byron Malone · Last reviewed .
Page in progress.
Settlement valuation anchor calculators are on the post-launch backlog. Likely candidates: structured settlement present value calculator (annuity stream discounted to lump-sum equivalent, with IRS §104 tax-free analysis); pain-and-suffering multiplier calculator (multiplier method: economic damages × 1.5–5x depending on injury severity, jurisdiction, and policy limits); future medical care present value (life-care plan annuity discounted at AFR).
When this section ships, expected coverage: multiplier method theory (jurisdictional norms by state + venue + judge), per-diem method (daily $ value × days of expected suffering), structured settlement annuity math (IRC §130 qualified assignment + life-contingent vs guaranteed payments), tax treatment under IRC §104(a)(2), and the “blue book” valuation methodology (Jury Verdict Reporter, Westlaw verdict research) for case benchmarking.
Sources we'll cite
- IRC §104(a)(2) — Personal injury settlement tax treatment
- IRC §130 — Qualified assignment of structured settlement
- IRS Applicable Federal Rate (AFR) — discount rate for PV math
- Bureau of Justice Statistics — Civil Trial Cases & Verdicts
- Jury Verdict Reporter / Westlaw verdict research databases
- National Structured Settlement Trade Association (NSSTA) — annuity rate tables
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