What is Legal Terms Lump Sum?

Lump Sum information: A lump sum is actually a slang term for the payment of a large amount of money at a single time, instead of payment made in smaller amounts over a long period of time. For example, large lottery winnings are usually scheduled to be paid in installments over time, very typically there are twenty years of annual payments. When a person wins a lottery prize there is an option to accept the present value of the future prize amount in a large, but single, lump sum payment.