Is it possible to use maternity capital? Use of maternity capital. What documents are needed for this application?
According to statistical information, only 54.6% of citizens who issued a certificate for maternity capital applied for its use. The rest of the families are still thinking about what to spend their maternity capital on.
The fact is that budget funds are allowed to be used only in certain areas. Let's consider what it is allowed to invest maternal capital in, and what areas are not targeted in 2020.
The legislative framework
The program has been in effect since 2007. It was approved by Federal Law No. 256-FZ of December 29, 2006. The text of this document explains how to use maternity capital. In addition, the law was amended:
- In 2011, the legislator allowed the use of a certificate for the construction (reconstruction) of a residential building with one’s own hands.
- 2015 brought changes related to the lifting of restrictions on spending budget funds in order to provide an initial mortgage payment. Now the certificate can be sent to the bank immediately after receipt.
- In 2016, it was allowed to use funds for the rehabilitation of disabled children.
- From January 1, 2018, you can arrange monthly payments for the 2nd child until he turns 1.5 years old. From 2020 – up to 3 years.
The main conditions for attracting budget money, laid down in the legislation, look like this:
- it is allowed to use funds both in full immediately and in parts;
- the owner makes the distribution in an application form (through the local body of the Pension Fund of Russia - PFR);
- allocation of money from the budget is carried out exclusively in non-cash format;
- In general, it is allowed to apply for funds after the child’s 3rd birthday (except for repaying the mortgage loan).
The main limitation is that the young person reaches 25 years of age.
Where is it allowed to send maternal capital in 2020?
In addition, the owner of the certificate is not prohibited from spending the money in parts in different areas defined by law. These currently include:
- improving family living conditions;
- payment for services of educational institutions (for any child);
- contribution to the pension savings fund for the mother;
- compensation for the purchase of rehabilitation means for disabled children (any child);
- monthly cash payments until the child reaches 1.5 years of age (from 2020 - 3 years), in connection with whose birth/adoption a maternal certificate was issued.
On a one-time payment of part of the maternity capital
The money was allowed to be spent on urgent needs, that is, the legislator did not define goals for it. However, he introduced some restrictions. These included the following rules:
- payment was allowed to be received only once;
- it was considered anti-crisis and was transferred to the account of the certificate owner.
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Matkapital for housing
Most citizens, when considering how to use capital from the state, choose to spend on housing.
At the same time, mother’s money is allowed to be invested:
- in the construction of individual housing construction projects, residential buildings, including through joint efforts (housing cooperative) with or without the involvement of a contractor;
- reconstruction of premises, which implies a change in their intended use;
- payment of the first mortgage payment;
- reimbursement of interest on a housing loan;
- repayment of existing mortgage debt (principal, not including penalties);
- acquisition of the whole or part of a residential property, provided that the remaining share is already owned by family members or is acquired simultaneously with this part.
Investing in children's education
An order for the use of maternity capital is allowed in 2020 to pay for training and related services. It does not matter which child’s education the budget money is allocated to (by account, by degree of relationship).
The following conditions for spending funds are mandatory:
- the educational institution must have state accreditation;
- You are only allowed to choose an establishment located within the state borders of Russia;
- a beginning student should not be more than 25 years old (it is not necessary to enroll in a paid university immediately after graduation).
In addition, family capital funds can be used to pay for children’s visits:
- sports schools and sections;
- music and art educational institutions;
- courses on studying foreign languages.
Payment for kindergarten
Many mothers who are choosing how to use maternity capital are attracted by the opportunity to pay for their children to attend a good private kindergarten.
This possibility is stated in government decree No. 931 dated November 14, 2011. To implement it, the following conditions must be met:
- make sure that the preschool institution is licensed;
- carries out its activities in the country;
- conclude an agreement corresponding to the established template;
- highlight in it the price of services for child support:
- nutrition;
- upbringing;
- socialization;
- ensuring hygiene standards.
Pension for mom
The entire amount of state support or only a part can be invested in old age, that is, used for pension provision. This method of spending maternity capital is the least popular at present. If it is implemented, money can be received:
- at one time;
- as urgent payments (at least 10 years);
- for life in equal shares after reaching the appropriate age.
Where is it not allowed to spend family capital?
There is a constant discussion in society about other areas for investing maternity capital. Almost half of certificate holders have not decided where to spend government assistance. Citizens are not satisfied with the directions defined in the current legislation. Thus, proposals have been made to include in the list of permitted purposes:
- purchase of vehicles;
- investing public money in a dacha;
- acquisition of land;
- compensation for apartment renovation costs;
- consumer loan payment.
Some of the stated proposals were discussed in the State Duma. Thus, since 2009, the legislative body has regularly introduced draft amendments to the law of December 29, 2006 No. 256-FZ, which provides for the purchase of a car for transporting passengers using a certificate.
Important! All of the above methods of using maternal capital prohibited by law.
In addition, there are other restrictions on the investment of public money included in the budget for the payment of state support to families with children. Thus, they are prohibited from repaying loan debt resulting from penalties.
How to spend maternity capital funds
In order to dispose of government assistance, you must contact the local branch of the Pension Fund. The certificate owner must do this by providing the following documents:
- certificate (original);
- ID card (copy of passport);
- SNILS.
In addition, you need to fill out an application for the disposal of family (maternity) capital funds. This is a standard form in which the intended purpose of the expenditure must be indicated.
The decision to approve and transfer money is made by Pension Fund specialists within 1 month. Therefore, recipients must be notified of the delay.
Important! Applications for disposal of money under the certificate are allowed to be submitted as many as required. If a citizen changes his mind about spending some part of state aid, he should write an application to cancel the previous one.
The package of documents for the disposal of maternal capital includes papers justifying its intended use. They are described in government regulations:
- No. 862 of December 12, 2007 - for housing;
- No. 926 12/24/2007 - for educational services.
Monthly cash payment
At the end of 2017, the President of Russia added another direction for using maternity capital funds - monthly cash payments to families in which the second or subsequent children were born (adopted) after 01/01/2018. Conditions for receiving payment:
- The family must permanently reside in Russia.
- The amount of income per family member should not exceed 1.5 times the subsistence level. From 2020 - 2 PM. When calculating the amount of family income, all money received by family members before taxes is taken into account.
The payment amount is the minimum subsistence level for children. You can apply for such a benefit at the territorial branch of the Pension Fund or the nearest MFC. An application for payment may be submitted simultaneously with an application for the issuance of maternal capital. The benefit will be paid until the child for whom it is assigned reaches 1.5 years (from 2020 - 3 years).
The funds are transferred to the applicant’s bank account, and their spending is not controlled. In this case, the amount of maternity capital is reduced monthly by the amount of the monthly payment.
Which direction of investment to choose?
It is up to the owners of the certificate to decide how to spend the money allocated from the state. The legislator does not limit citizens in terms and choice of goals laid down in the legislation:
- family capital can be used even after the end of the program, that is, the certificate will not be lost;
- if the owner does not choose a method of investing the funds, they will automatically be involved in his pension provision after reaching the required age.
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Video about the procedure for using maternity capital
April 24, 2017, 17:32 Dec 16, 2019 18:55 
One of the measures of social support for families who have a second and subsequent child is a family certificate. Parents who had a child born in 2007 or later have the right to receive funds from the state budget. If the issuance of a certificate is possible immediately after the birth of the baby, then it can be used only after reaching a certain age. Maternity capital up to 3 years can also be realized, but only if funds are used to improve housing using borrowed funds.
Conditions for issuing the certificate
The main provisions regarding the receipt and sale of family capital are given in Federal Law No. 256, adopted in 2006.
Basic Rules
The terms and conditions for the implementation of the program are established by paragraph 6 of Art. 7 of the above law:
- the general right to use funds to pay for education, pension savings, and home improvement arises three years after the birth of the baby;
- the basis for sending funds from the state budget to a specific family is an application submitted to the territorial branch of the Pension Fund of Russia;
- In the event of the death of parents or deprivation of rights when transferring the baby to state support, the child personally will be able to use maternity capital, but only after reaching adulthood.
Requirements for housing purchased with maternity capital
Parents and other persons entitled to a family certificate have the right to use funds to purchase private houses and apartments on the secondary market and among new buildings.
The purchased housing must meet certain requirements set by the Pension Fund:
- the property is located within the Russian Federation;
- the apartment or house complies with established sanitary and hygienic standards;
- the acquired property is recognized as a full-fledged comfortable residential property.
An important condition must be taken into account when using capital for housing - shares in a new apartment or house must be allocated to all family members.
How to spend maternity capital up to 3 years
Despite the general rule that allows you to dispose of a certificate only after 3 years, an exception has been established.
According to clause 6.1 of Article 7 of Federal Law No. 256, funds can be spent without waiting for the child’s third birthday if the money is used to purchase housing using housing loans. Thus, if there is an urgent need to obtain more comfortable living conditions, parents can contact the bank and apply for a mortgage.
If you do not have your own funds for the initial capital, the solution will be to attract budget funds through a family certificate as a down payment.
The state program allows almost every family with two or more children to become owners of their own modern housing, providing their minor wards with decent living conditions and development.
The main criterion for using maternity capital for up to three years is the participation of the banking structure in financing the transaction. This step is caused by the need to ensure control over the targeted allocation of budget funds within the framework of the areas prescribed by law. The state compensates part of the funds from the debt to the credit institution in the amount of maternity capital valid at the time of citizens’ application.
In 2017, families have the right to count on compensation in the amount of 453 thousand rubles if during the year they allocate maternity capital funds to a transaction agreed with the Pension Fund of Russia.
Most families write an application to transfer the amount due under the family certificate to pay off existing mortgage debts. However, there are alternative options that are also closely related to targeted bank lending. The country's largest banks provide comprehensive support in organizing such transactions and advise on issues of obtaining mortgages using maternal capital.
Main directions
The legislation considers the following options for disposing of a family certificate for parents who want to solve housing problems without waiting until the child turns three years old:
- Directing funds to repay the principal debt (loan body) on a mortgage loan previously issued for the purpose of improving housing.
- Compensation for interest accrued by a credit institution for the use of borrowed funds for the purchase or construction of housing.
- Accounting for capital as a down payment under a mortgage agreement with a bank.
The main common feature of all the above options is the exclusion of parent borrowers as a link in the chain of transfer of funds. The money is sent directly to the bank using the details specified in the mortgage documents and in an amount not exceeding the balance of the debt or the amount of the family capital.
Paying off an existing mortgage
When taking out a mortgage, borrowers plan to repay the loan as soon as possible, saving the amount of accrued interest on early repayment. However, in practice, a lot of unforeseen situations arise that impede the execution of the plan.
The birth of a baby is always associated with additional expenses and an increase in the financial burden on the main breadwinners in the family. In this case, the law allows state assistance to be directed towards full or partial repayment of a housing loan, provided that the housing meets the requirements of the Pension Fund of Russia and the parent-certificate holder has executed a notarized obligation to allocate each family member a share in the purchased mortgaged apartment.
In addition to purchase and sale transactions, it is possible to receive compensation during the construction of a residential property or its reconstruction.
The procedure for receiving funds consists of several steps associated with interaction with the following parties:
- credit institution;
- Pension Fund;
- the seller of an apartment or other residential property.
Before the creditor receives the funds, approval will be required from the local branch of the Pension Fund.
Features of the procedure
The process of selling maternity capital funds in the event of repaying an existing mortgage is simpler and eliminates the steps of finding suitable real estate and pre-approval of the transaction from the bank.
At the first stage, the parent who has received a family certificate applies to the Pension Fund with an application to dispose of funds under the state program and provides a full package of documents for the property, the borrower and his family members, a mortgage agreement and certificates from the bank.
The complete list is as follows:
- current mortgage agreement (copy);
- information from the lender about the amount of the remaining mortgage debt and interest (original);
- apartment security agreement;
- certificate of registration of ownership in Rosreestr (if available, for an apartment that has already been built and put into operation);
- documents establishing the right to an object under construction (when purchasing an object that has not been put into operation);
- agreement on shared construction (if an apartment is purchased in a building under construction);
- when sending funds as payment of a loan debt on shares or entrance fees, they request an extract from the register of the housing cooperative;
- permitting documents for the construction of a house (if the property has not yet been completed);
- a written obligation to register the apartment as the property of all family members.
Fund employees will review the application and check documents within a month. If all the conditions for the sale of capital are met, the Pension Fund makes a positive decision and transfers the funds according to the details of the mortgage account at the bank.
After the funds are credited, the lender makes a recalculation, reducing the monthly payment amount taking into account the reduction in the amount of debt. If the funds on the family certificate are not fully spent, the remainder can be used for other legal purposes.
To pay the down payment
In the process of implementing the state social program to help Russian families, its rules are adjusted and supplemented. Thus, in 2015, according to the enacted law No. 131-FZ, families who could not find start-up funds were given the opportunity to take out a mortgaged apartment, using the funds from the family certificate as a down payment on the mortgage. Before the law came into force, such a right arose only when the child reached the age of three.
The maternity capital program has undergone many changes, but one thing has remained unchanged - this amount has quite seriously helped many families and has become a kind of impetus for demographic growth.
Almost every year the state carries out indexation of maternity capital, and currently amounts to 453,026 rubles.
Terms of use
As the law says, maternity capital can be used in the following:
- Formation of a pension for the child’s mother;
- Children receiving education;
- on the territory of the Russian Federation;
- Purchasing various services and goods necessary to integrate and adapt children with disabilities into society.
Legislative aspect of the use of funds in the first three years
The seventh article 256 of the Federal Law specifies the exact terms of use of those funds intended for maternity capital.
Here are following rules:
- If the baby’s mother has the right to a certificate, she can dispose of it only after 3 years have passed after adoption, or after the child is born. In order to receive a maternity certificate, you must submit documents to the Pension Fund.
- If the child’s parents are deprived of their rights or have died, and the certificate has not been cashed during this time, then the right to it passes to the child. However, he will be able to use it only after he reaches adulthood.
Features of cashing out
In 2019, maternity capital will apply to all same rules, which were also in effect in 2018. Namely:
Well, if we talk about the age of three, then, indeed, you can cash out capital only after the child has turned 3 years old. After this age, parents can spend the certificate on a pension for the mother and education for the children.
What and under what conditions can funds be spent until the child is 3 years old?
However, as the law states, parents of a child under three years old still have the opportunity to spend Maternity Capital in 2019 on some goals. Among them:
- in the amount of the subsistence minimum for a child up to one and a half years old;
- , or repayment of a certain amount for living space already taken.
- Adaptation of children with
In all of the above cases, parents have the right to spend Maternity Capital received for a child under three years of age.
If we talk directly about the use of maternity capital up to three years for housing needs, then the situation is as follows:
- Purchase of housing under construction or ready-made housing. According to Law 256, you can use the certificate after the child turns three years old, or to purchase an apartment or, as well as to purchase a room. This is under normal conditions. If you are going to take out a real estate loan, then you don’t have to wait three years, but spend all or part of the amount when you want.
- There is one more aspect regarding maternity capital and housing. The certificate can be spent without waiting for the child to turn three years old, if your family has land obligations for the fulfillment of which you intend to use the funds. Moreover, it is important to understand that land obligations do not necessarily have to be mortgages. But! They should be used for construction, reconstruction, as well as the acquisition of premises.
Thus, a family where a second child was born has many options for how to spend capital until the child turns three years old.
Currently, there are many rumors about what the certificate can be spent on in 2019 before the child reaches three years old, here are just a few of them:
- Using the certificate, you can repay a car loan. In fact, this option was considered in the State Duma, but was not supported.
- Also, almost every year a rumor appears that a certificate is given not only for the second, but also for the first child. In fact, in 2019, a certificate will not be given for the first child, but this option is also being considered in the State Duma.
- There was also a rumor that the state could not cope with payments and planned to cancel maternity capital in 2019. It is not true. Moreover, the program has now been extended until December 31, 2021!
- Also, at one time it was planned to allow in 2018 to pay for the education of parents with the help of maternity capital, but the bill was never adopted, although it currently remains under consideration and, perhaps, will come into force someday.
As you can see, there are many rumors, but you shouldn’t believe them all. In order to obtain complete information on the Maternal Material, you should contact the nearby Pension Fund, where you will be provided with truthful conditions for the program and a complete list of documents.
Procedure for receiving funds upon early use
In order to take advantage of maternity capital for up to three years next year, you should do the following:
As the law states, you do not have to use the entire amount allocated under the certificate. For example, you can spend a third of the money, and leave the remaining funds so that they undergo indexation in the future, if any.
List of documents provided
If you decide to take out a mortgage on your home, or pay off your housing debt with maternity capital, then you will need to collect following documents:
You will also definitely need your personal documents, namely:
- Passport of not only the mother, but also the father (a photocopy will do);
- Certificate for the provision of state aid (here you will need not only a photocopy, but also the original);
- Birth certificates of all children in the family (both originals and photocopies will also be needed here).
All of the above documents must be submitted to the Pension Fund.
Monthly payments from maternity capital
On the initiative of the President of the Russian Federation, since 2018 it has been possible to use maternity capital funds for monthly payments for a second child. Federal Law 418-FZ dated December 27, 2017 established that if a second child is born in a family after January 1, 2018 and if the family’s average per capita income does not exceed 1.5 times the subsistence level of the working population in the region, then the Pension The Russian Federation Fund can assign a monthly payment for a period of 1 year from the birth of a child in the amount of the subsistence minimum per child in the region where the family lives. This state aid was popularly called .
The use of funds before the child reaches 3 years of age is described in the following video:
In most cases, maternity capital can be used three years after the birth or adoption of a child, in connection with the birth of which the right to state support arose. However, in Part 6.1 of Art. 7 of Federal Law No. 256-FZ of December 29, 2006 on state support for families with children (maternity capital law) establishes the areas in which maternity capital is allowed to be spent immediately.
You can spend the certificate funds, without waiting for the third anniversary, on:
In 2020, the amount of maternity capital (MC) is 466617 rubles. The right to issue a personal certificate arises upon the birth or adoption of a second (subsequent) child no earlier than January 1, 2007.
Photo pixabay.com
Using maternity capital to purchase housing for up to 3 years
The Pension Fund will consider the application within a month. If approved, the Pension Fund will transfer the money within ten working days.
Payment of the down payment
On May 23, 2015, Federal Law No. 131-FZ came into force, which allowed the use of maternity capital to pay the down payment on a loan or loan (with the conclusion of a mortgage agreement or not) for the purchase or construction of housing through participation in legal transactions (conclusion of a purchase agreement). sales, participation in shared construction, etc.).
Lenders can be:
- Banks and other credit organizations licensed by the Bank of Russia (Central Bank).
- Credit consumer cooperatives operating for at least three years.
- Agricultural credit cooperatives that have been operating for at least three years.
- Joint Stock Company "Dom.rf".
In banks, the possibility of paying the first installment with maternity capital is implemented differently:
- At Sberbank the down payment is not less than 15% from the loan amount.
- At VTB, the amount of allocated maternity capital funds should not exceed 15% of the cost of housing. In addition, the amount of own funds cannot be less than 10% of the down payment
- At Gazprombank minimum down payment - 10%. You must pay at least 5% of the fee with your own money.
The procedure for using maternity capital to pay the down payment is as follows:
- Registration of a certificate of the balance of family capital
- Submitting an application to a credit institution.
- Selecting a property.
- Providing documents on the property to the credit institution.
- Signing loan documentation.
- Registration of the right to residential premises in Rosreestr.
- Getting a loan.
- Submitting an application for an order to the Pension Fund.
To the Pension Fund, in addition to documents from, must be presented(in accordance with clause 12 of the Rules for allocating maternal capital to improve housing conditions):
- a copy of the loan agreement;
- a copy of the mortgage agreement that has passed state registration in Rosreestr;
How to repay a home loan?
Matkapital can also be used to repay the principal debt and interest on a loan or loan. However, it is prohibited to pay penalties and fines for late payments using MK funds.
It is assumed that the borrower Maybe thus shortening the loan repayment period or reducing the amount of monthly payments. However, in most cases, banks decide on their own reduce your monthly payment.
When applying to the Pension Fund with documents, you will need to provide additional ones (the list is given in clause 13 of the rules for disposing of maternal capital for improving housing conditions):
- a copy of the loan agreement;
- a copy of the registered mortgage agreement (if one was concluded);
- a certificate from the bank about the amount of remaining debt;
- obligation to allocate shares;
- an extract from the Unified State Register of Real Estate containing information about the rights to the purchased residential premises;
- if the property has not yet been put into operation - a copy of the agreement for participation in shared construction;
- if the loan funds were used to pay the entrance fee and (or) share contribution to a housing cooperative - an extract from the register of members of the cooperative or a decision on admission;
- confirmation of non-cash transfer of credit funds to an account opened by the certificate owner or his spouse.
Is it possible to use maternity capital to buy an apartment for up to 3 years without a mortgage?
Maternity capital can be used to purchase housing before three years, if his funds will be used to repay a loan or loan for the purchase of housing. In the law on maternal capital no requirement that the loan must be a mortgage.
Explanation
Mortgage is real estate pledge which ensures the fulfillment of loan obligations. The mortgaged housing will be transferred to the bank (or other credit institution) if the debt obligations are not repaid.
A loan issued against real estate is called a “mortgage loan.” Call it a mortgage incorrect, however, this definition is widespread in colloquial speech.
From the above it follows that to buy housing with maternal capital without waiting three years from the birth (adoption) of a child, possible without a mortgage. However, very few organizations are willing to provide funds on such terms.
Loan for maternity capital for the purchase of housing up to 3 years
Maternity capital you can repay the loan, without waiting three years from the birth or adoption of the second (subsequent) child. The rules and conditions for obtaining a loan and credit are regulated by Chapter 42 of the Civil Code. The lender or creditor gives money to the borrower and then repays it. However, a loan, unlike a loan, can be interest-free if this is specified in the agreement (Part 1 of Article 809 of the Civil Code of the Russian Federation).
In order for a loan to be repaid with maternity capital, it must be issued by a legal entity (Part 7, Article 10 of the Federal Law on Maternity Capital):
- a credit organization whose activities are controlled by the Central Bank;
- credit and agricultural credit consumer cooperatives that have been operating for at least 3 years;
- unified development institute in the housing sector (JSC Dom.rf).
Attention
From 2015, repay a loan from a microfinance organization with family capital it is forbidden. Federal Law No. 54-FZ of March 8, 2015 repealed the effect of the corresponding clause in the law on maternal capital.
The rules for repaying a loan with certificate funds do not differ from the rules for a loan:
- It is allowed to repay both the new loan and taken earlier. The main thing is that his goal is to purchase or build housing.
- Matkapital pays the down payment, principal and interest on the loan, but not fines or late fees.
- The loan can be mortgaged (secured by real estate) or unsecured.
- To transfer MK funds to the lender, the Pension Fund will need:
- a copy of the loan agreement;
- a copy of the mortgage agreement registered in Rosreestr (if the loan is a mortgage);
- obligation to allocate shares.
Is it possible to use maternity capital to build a house for up to 3 years?
It is possible to build a house with maternity capital before three years, provided that its funds are allocated to pay off a loan or loan taken for construction (Part 6.1, Article 7 of Federal Law No. 256-FZ). In other cases, you will have to wait three years from the date the right to maternity capital becomes available.
A house most often means a separate residential building. At the legislative level, such housing is referred to as an “individual housing construction object” (individual housing construction object).According to the law, you can get a loan for the following types of construction:
- individual housing construction (independently or by a construction organization);
- participation in shared construction of an apartment building or small apartment building.
Direct use of maternity capital for the construction of a house without a loan is only permitted in three years after the birth or adoption of a child.
Matkapital for preschool education of children
Maternity capital can be used to pay for preschool education children and related expenses straightaway after the right to a certificate arises, wait 3 years no need. Allowed to pay:
- training in preschool education programs;
- services for the supervision and maintenance of a child in a preschool educational institution.
Preschool educational institutions are educational organizations engaged in the training, education and development of children before school. These include:
- Development centers, which mean:
- organizations involved in the comprehensive development of the child - the development of speech and motor skills, preparation for school, etc.;
- specialized institutions that provide training in one area, for example, foreign language courses for children.
Attention
At the moment, state and municipal kindergartens, as well as kindergartens organized by legal entities, are allowed to pay with maternity capital. However, the Ministry of Education approved the idea of introducing the possibility of paying with capital for kindergartens created by individual entrepreneurs.
The conditions for using maternity capital for children's education are regulated by:
- Art. 11 of the federal law on maternity capital;
- rules approved by Decree of the Government of the Russian Federation No. 926 of December 24, 2007.
According to them:
- MK certificate funds can be spent on preschool education of children at any time from the birth (adoption) of a second or subsequent child;
- it is allowed to pay for the education of any child, and not just the one whose birth (adoption) gave rise to the right to maternity capital;
- the institution providing the services must be located on the territory of the Russian Federation.
Monthly payments from maternity capital
Since 2018, a new direction for using family capital has been in effect - receiving monthly payments for a second child under the age of one and a half years. They are made in accordance with the provisions of Federal Law No. 418-FZ of December 28, 2017 “On monthly payments to families with children.”
According to it and the rules approved by Order of the Ministry of Labor No. 889n dated December 29, 2017, certain conditions are established for receiving payments from MK funds:
- Second child was born no earlier than January 1, 2018.
- The certificate owner receives the payment.
- The average per capita family income should not be above one and a half living wages for the working population in a specific region (for the 2nd quarter of the previous year).
To assign a monthly payment, you must submit an application to the Pension Fund within a year and a half from the date of birth of the child (Part 1, Article 2 of the law on payments). This support measure will be provided:
- From the day of birth child, if her appointment was applied for no later than 6 months (the amount for previous months will be transferred in full).
- From the date of application, if the application was submitted later than 6 months.
Attention
After the first application, the benefit is assigned for 1 year. After the expiration date it is required again apply for payments before your second child turns 1.5 years old.
In accordance with Appendix No. 2 to Order No. 889n, with an application to the Pension Fund you must provide:
- birth or adoption certificate of the child;
- parent's passport or other identification document confirming Russian citizenship;
- information about income (certificate from work or place of study, certificate of pension, benefits, etc.);
- Bank details.
In certain cases, additional documents may be required:
- if the mother died or was deprived of parental rights and the right to maternal capital passed to the father - a death certificate or a court decision on deprivation of parental rights;
- if the father is called up for military service, then he is not taken into account as part of the family when determining income, so a certificate from the military registration and enlistment office is required.
The payout amount is children's living wage established in a specific constituent entity of the Russian Federation for the second quarter of the previous year (see table with the amounts of monthly payments by region in 2020).
Matkapital for a disabled child
Maternity capital can be used for social adaptation and integration of disabled children into society at any time after the right to receive it arises. Certificate funds are provided to compensate for the costs of purchasing goods and services in accordance with with a rehabilitation program.
The conditions for spending maternity capital in this area are established by Art. 11.1 of Law No. 256-FZ and the rules approved by Government Decree No. 380 of April 30, 2016.
With an application for disposal of maternity capital funds to the Pension Fund, you must provide:
- Certificate owner's passport.
- Child rehabilitation program.
- Documents that confirm spending on goods and services in accordance with the program (cash receipts, service agreement, purchase and sale agreement with a goods order, etc.).
- An act of checking the availability of goods for a disabled child.
- Bank account details.
An inspection report is required to monitor what is for a disabled child actually purchased necessary goods and services, according to his rehabilitation program. It is drawn up by local social security employees within five days from the certificate holder’s request.
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How to use mat capital to purchase housing and other needs? What is the period and procedure for using maternity capital funds? Is it possible to use family capital without waiting 3 years?
Hello, dear readers of the HeatherBeaver online magazine. Welcome to the site's regular expert, Eduard Stembolsky.
We continue our series of publications about maternity capital. The topic of this article is the competent, efficient and profitable use of funds secured by a state certificate for family capital.
Let's start, friends!
1. General procedure for using maternity capital - terms, conditions, rules and documents
The state incentive program for families with two or more children has been in effect since 2007. Initially, the amount of maternity capital (MC) was 250 thousand rubles, currently its size (thanks to annual indexation) is 453 thousand.
The main goal of the program is to increase the birth rate in the country and stimulate natural population growth. You can receive a certificate for family capital immediately after the birth (adoption) of a second (or subsequent) child, but you can use the funds (with the exception of certain situations) only after the baby’s third birthday.
The amount is not given to parents or children after they come of age: it is not cash, but a kind of financial asset that can only be used for specific needs. The list of such needs is limited by law.
A few important facts regarding the use of MK:
- one family can receive benefits only once (with the exception of regional programs, according to which you can receive capital again after the birth of the fourth or fifth child);
- You can apply to the Pension Fund of Russia (PFR) at any time after the birth of your 2nd (or subsequent) child;
- a change in the amount of capital due to indexation is not a reason to replace an already received certificate;
- The benefit is given to the management of the parents, not the child.
Certificates are issued by the Pension Fund. This structure also deals with all decisions regarding the intended use of funds. More precisely, the Pension Fund gives consent or refusal to proposals from families to use public funds.
Families who have a second baby can contact the regional office of the Foundation at their place of stay or residence immediately after this event.
There are 3 options for submitting an application:
- Personally.
- Through a trusted person.
- By mail (including email).
Women who gave birth or adopted children after January 1, 2007, men who are adoptive parents or sole parents have the right to own a certificate.
To obtain a certificate you need the following documents:
- a written application;
- applicant's passport;
- birth certificates of all children in the family;
- court order on adoption.
The application is reviewed by the Fund within a month (during this time, employees carry out a standard legal check), after which a decision is made to grant the right to benefits. If the applicant cannot come to receive the document in person, it will be sent to him by mail.
Please note some nuances: capital is issued only for children born (adopted) after 01/01/2007. However, in the “children” column you must indicate all children, including those born before this date.
Example
The mother gave birth to 3 children - in 2004, 2007 and 2015. When applying for a certificate in 2017, she needs to indicate that the benefit should be issued in connection with the birth of a second child. However, the application must include all children, including the youngest.
In this case, the family will be able to use the funds immediately after the certificate is issued, since 3 years have passed since the birth of the second baby.
The certificate itself is a bearer security: it is not valid without a document confirming your identity. The form has several degrees of protection, but the paper itself has no value without confirmation of information in the unified state register.
What I mean is that falsifying a document is pointless - only those who have the legal right to do so can gain access to funds secured by a certificate. Nevertheless, maternity capital scams do occur: I will talk about them in a separate section of our article.
Important news on the topic:
President Putin proposed extending the maternity program until 2022. Additionally, he proposed introducing a number of changes to its implementation.
Now families who need it will be able to receive maternity capital funds within the first 1.5 years after the birth of a child - in the form of monthly payments of about 10,000 rubles.
In addition, families can use maternity capital to care for a child during the preschool period, paying for the services of private kindergartens and nurseries.
News video on this topic:
2. Is it possible to use mat capital for up to 3 years?
Current legislation states that it is possible to obtain the right to use funds secured by a certificate only after the child reaches three years of age.
At first there were no exceptions to this rule, but practice has shown that for many families it is not practical to wait three years, since money is often needed right now, and not in the near future.
This is especially true for families who do not have their own home or live in a cramped apartment with two or more children. State support is especially important in the first years of the life of the second or next child, and not after three years.
For this reason, the state accommodated young families and allowed in some situations the use of maternity capital for up to 3 years.
Early use of money is possible in the following cases:
- if you need to repay an existing housing loan;
- if you need to make a down payment on your mortgage;
- if you need to pay off a loan received for housing construction or reconstruction.
You can repay both the principal amount of the loan and interest with your mother’s money. But penalties and fines for late payments are prohibited from being paid with state assets.
In all cases, the decision to transfer finances to bank accounts is made by the Pension Fund. Sometimes employees of this institution refuse to use capital early - for example, if they suspect certificate holders of misappropriation of funds.
3. How to use maternity capital in 2018 - TOP 5 popular ways
When deciding to use family money, parents should carefully consider the pros and cons, since they will not be able to receive government subsidies a second time.
Families who have a difficult housing situation - nowhere to live, overcrowding, inappropriate living conditions - do not have to think much about it. Money needs to be spent on purchasing real estate or building (reconstructing) a house.
If there are no problems with living space, you should think about the education of your children: investing in a child’s development is the most profitable and promising type of investment.
Let us consider in more detail all types of treatment of family capital.
Method 1. Buying an apartment (house)
If the family already has its own savings, but they are not enough to buy an apartment, you can supplement the required amount from maternity capital funds.
According to statistics, purchasing real estate is the most popular and relevant option for using public funds. Matkapital is used both for a one-time purchase of an apartment and for purchasing housing with the help of a loan.
Not all housing can be purchased with government assets.
Requirements for real estate objects are strictly regulated:
- apartments and houses purchased with maternal capital funds must be located in Russia;
- housing should not be dilapidated and unsafe;
- the property must have the status of a full-fledged residential property.
The transfer of money to the seller’s account occurs only after a positive response from the Pension Fund of Russia on the expenditure of funds and the execution of a purchase and sale act in Rosreestr (Federal State Registration Service).
To protect the interests of children, Pension Fund employees are required to personally inspect purchased housing for compliance with the requirements established by law. If they feel that the house or apartment is unsuitable for children to live in, they may refuse to finance the transaction.
Please note a few important facts:
- When purchasing housing, registration is made for all family members(usually dad, mom, 2 children).
- It is not necessary to use the entire amount of capital– part of the funds can be left for other purposes.
- The decision to transfer funds is made by the Fund within 2 months– be sure to calculate the time frame for purchasing a home in advance to avoid conflicts and misunderstandings with the seller.
- It is prohibited to purchase land plots using maternity capital.- You will have to buy land with your own funds.
In fact, the housing is purchased either in installments (if the seller agrees to wait for the funds to be transferred), or the buyer takes out a loan, transfers the money to the former owner of the apartment, and pays the debt to the bank from maternal capital.
All the details about purchasing private housing with state benefits are in the article “”.
Method 2. Improving living conditions - reconstruction and construction
Another way to improve your living conditions is to build a house yourself or with the help of contractors. Parental assets can also be used for these purposes.
Previously, it was possible to build houses with family money only with the involvement of professional construction organizations. However, practice has shown that it is more profitable for many families to build housing on their own, calculating the timing of the work and purchasing building materials on their own.
You can request money for construction from the Pension Fund in advance or reimburse the costs retroactively (if you want to build a house before your child reaches three years of age). In the latter case, it is important to keep all receipts and documentary evidence of your expenses.
Funds for the construction of a house are issued in 2 stages. First, 50% of the requested funds are transferred, and six months later the second half is credited to the account. An important condition is that within 6 months you must lay the foundation, build the walls and roof of the future house.
I have already described its use in detail in one of the previous articles.
Now about housing reconstruction. This term refers to an actual change in the technical characteristics of an apartment in order to increase their efficiency and functionality.
In other words, traditional home repairs - changing plumbing, laying parquet, installing plastic windows and suspended ceilings - cannot be paid for with public funds.
What about reconstruction?
- increasing the area or number of floors of housing;
- changing the technical characteristics of the room (for example, turning an attic into an attic);
- complete renovation of load-bearing structures - in particular, increasing the height of ceilings in the house.
All work to change the characteristics of a building is pre-approved by the relevant institutions.
Method 3. Loans, credits and mortgages under capital
With the help of matkapital, you can make a down payment on the loan and repay the main part of it. Before contacting the bank about loans under microfinance, you should obtain permission to use government subsidies from the Pension Fund of the Russian Federation.
Only when the Fund’s employees give the go-ahead should it be worth negotiating with financial institutions about issuing a loan. You will not be able to use the funds yourself, bypassing the Pension Fund.
The fund allows the use of money only for the purpose of improving housing conditions. Taking consumer loans secured by maternal capital is prohibited, although in some regions of the Russian Federation this practice occurs.
In large banks you can get a mortgage using capital. This money is used as a down payment or a way to reduce your monthly payments. To repay the mortgage, it is allowed to use funds up to 3 years of age.
Example
The Petrov family has a mortgage debt for 20 years. 10 years after the start of payments, they have a child. Immediately after receiving the certificate, parents have the right to redirect funds to repay the loan or reduce the interest rate on the mortgage.
For a positive decision on issuing loans secured by MK, borrowers must have a regular income, stable work and a clean credit history.
Method 4. Payment for education
Education means not only studying at a university, but also any other training and development programs. You can spend funds on education from 3 to 25 years, using government assistance as needed.
The most popular areas for using maternal capital:
- payment for kindergartens;
- payment for clubs, music and art schools;
- training in higher and secondary educational institutions;
- accommodation of students in a dormitory.
Public and private educational institutions work with MK. The main condition is that they must be located on the territory of the Russian Federation. Unfortunately, it will not be possible to pay for tuition at a European university with state support.
Method 5. Transfer of funds towards pension
Experts believe that directing funds to accumulate a mother’s pension is a profitable and far-sighted decision. Although only a few of the total number of certificate holders use this method, the prospects for this option are quite numerous.
Firstly, this money is invested in general pension savings, which means it is included in circulation and increases interest on income.
If you direct these finances to a non-state Pension Fund, you have a chance of a significant increase in funds, since such organizations not only store, but also invest this money in profitable financial instruments with low risks.
You also have the right to change your mind at any time and withdraw funds from the NPF along with the accumulated interest.
For clarity, I combined all the options for using MK in a comparison table
№ Methods of use Advantages Flaws 1 Buying a house New housing at a reduced price Not all developers work with maternity capital 2 Reconstruction and construction Opportunity to radically improve living conditions using public money Complex documentation of the procedure 3 Loans and credits You can make a down payment or repay existing loans Not all banks issue loans against mat capital 4 Payment for education Can be used at any time from 3 to 25 years Not all institutions work with family state assets 5 Pension contribution It is possible to increase the amount of capital in private non-state companies Risk of losing part of your funds due to inflation 4. Allocation of shares of children and husband when using mat capital - legal advice
Many certificate holders are concerned about an important question - how to allocate the shares of the husband and children when using maternal capital to purchase real estate.
When purchasing an apartment or house, including the husband and all children in the list of owners of the property is a mandatory condition.
Loan agreements for the purchase of housing are often drawn up by both parents - they are co-borrowers and home owners.
However, Pension Fund employees will not issue permission to use the funds without a written commitment from the parents to include all existing children (including adopted children) among the owners of the purchased apartment.
An agreement on the allocation of shares can be drawn up at a notary or independently. This must be done no later than six months after purchasing a home or purchasing it on credit.
If such a procedure has not been carried out, all subsequent transactions with housing will be considered illegal, as well as the very ownership of a house or apartment. The specific sizes of shares are not stipulated by law: the main thing is that all children are allocated their share of housing.
5. Fraud and scams with mat capital - how to avoid deception
Although MK is not “real” cash, there are plenty of hunters to profit from it. There are dozens of fraudulent schemes developed by swindlers in order to use maternity capital for their own purposes.
Main scam options:
- illegal withdrawal of capital;
- obtaining a certificate by people who are not entitled to it;
- real estate scams: acquisition of non-existent housing, fictitious sales contracts, sale of construction shares purchased with capital;
- scams of officials who have access to the disposal of assets.
The simplest scheme is direct deception of certificate holders. Criminals promise to “help with cashing out” funds for a certain percentage, but after taking a commission, they disappear without a trace.
Operations with maternity capital through microfinance organizations offered good prospects for fraudsters. However, since 2015, microfinance organizations have been officially prohibited from working with maternity capital.
This forced measure was taken after some companies cashed out several billion rubles of public money using fraudulent schemes.
To avoid fraud, I advise certificate holders to act only through official channels - the Pension Fund of the Russian Federation, large banks and government agencies.
6. Prospects and new opportunities for using family capital
New opportunities for the use of maternal capital are often provided by regional structures. Thus, in some regions of the Russian Federation it is already possible to purchase not only real estate, but also furniture, household appliances and other goods with these funds.
Among the real prospects on a federal scale is the possibility of purchasing a car for the whole family with MK money. There is a separate material on this issue on our resource “ Buying a car with maternity capital».
