This year the amount of maternity capital has been increased. At the birth of their first child, the state transfers 466 thousand rubles to young parents. And if a second baby was born in 2020, then the amount of maternity capital increases to 616 thousand rubles. This is a lot of money, so the question of what to spend maternity capital on should be considered carefully. A lawyer and family dispute mediator will help you answer this question. Yuri Kapshtyk.
Where to use maternity capital
It is a mistake to perceive these funds as an allowance that can be spent at your own discretion. The state views the program as a way to improve the living conditions of young families, as well as offset education costs. Therefore, money can only be spent on a limited range of tasks, but it’s up to the parents to decide what exactly.
Buying an apartment, a house. Most families use the funds to purchase spacious housing. When children are born, additional square meters are needed, and the state payment allows you to purchase a larger apartment or house without spending your own money on it. You can buy a home after the child’s third birthday, at whose birth a certificate was received. This rule does not apply to housing purchased on credit: you can pay off the mortgage or make a down payment on it even before the child is three years old, immediately after issuing the certificate.
Starting this year, maternity capital issued at the birth of a third child can only be used to pay off the mortgage.
For construction. The state allows targeted payments to be directed to the construction of a house, repair and reconstruction of existing housing. And even introduced relaxations in this area. If earlier construction was allowed only on plots for individual housing construction, now it is possible to build for budget money on garden plots. The main thing is that the land is owned and permission for work has been obtained. Construction and reconstruction of a house should be planned after the child’s third birthday. The money will not be given immediately: half of the amount will be given after submitting an application for payment, and the other half will be given six months later.
To pay for training. If a child attends a paid kindergarten, then up to the age of three, you can pay for the institution’s services using maternity capital. After this, the amount can continue to be spent on education, not only for the baby at whose birth the certificate was received, but also for other children. For example, pay for kindergarten for a younger child and university education for an older one.
For a subsidy. In 2020, maternity capital became a serious help to low-income families, who were able to receive a monthly amount in the amount of the subsistence minimum to support a child. All families whose income per person does not exceed two minimum wages in Russia (today - 12,130 rubles) can apply for the payment.
The law also allows the use of funds from the mother’s funded pension for the education and adaptation of disabled children.
Is it possible to buy a house (or part of it) using maternity capital?
Important! Before deciding on the issue of concessions, consult with a competent specialist who can tell you about the rights and how to properly invest this certificate in real estate.
Difficulties can arise only when purchasing housing that is still under construction or when participating in shared construction, since registration of ownership is possible only after the object is put into operation.
Reconstruction of housing requires a mandatory increase in the total area of living space by at least one accounting standard. Otherwise, the construction work (whether on your own or with the involvement of third parties) does not meet the requirements of the Pension Fund regarding the intended use of finances, and, as a result, will not be paid for by the state.
Since you will be required to provide documentary evidence of the fact of purchasing a new home, before visiting the guardianship authorities you need not only to find a suitable option for a new house or apartment, but also to draw up a preliminary sale agreement, certified by a notary.
Creating comfortable living conditions is possible through the purchase, reconstruction or construction of turnkey housing in a city or village. This is provided for by Government Decree No. 862 of December 12, 2007 “On the rules for allocating maternity capital funds to improve housing conditions.”
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If a family plans to use government assistance before the child reaches 3 years of age, they cannot do without taking out a mortgage loan to purchase real estate.
What is the best way to spend maternity capital in 2020?
Each family has different priorities and parents can, at their own discretion, manage the amount of maternity capital in the areas specified by the state. But there are the most profitable ways to use money.
“In my opinion, the most profitable way to spend maternity capital is to invest it in real estate,” comments lawyer and mediator for family disputes Yuri Kapshtyk. — This is the most established unit, a reliable investment. When you buy a home using maternity capital, you have a property asset that can be improved in the future by adding a certain amount.”
The amount of maternity capital is the same for all Russians and is determined only by the number of children in the family. But real estate prices in the regions are different. If for Moscow the amount of 600 thousand rubles will be only a tenth of the total cost of a spacious apartment, then in a small city this money can pay for half the cost of housing.
“There are no established requirements from the state for living space purchased for this money,” continues Yuri Kapshtyk. - This can be primary or secondary housing, a private house, even in dilapidated condition. If parents have the strength and desire to improve this house, complete it, create good living conditions for themselves and their children, this can be done.”
Registration of real estate shares
It is prohibited to sell an apartment purchased with capital immediately after purchase; liability for such actions is stipulated by law.
The procedure for registering equal shares after purchasing real estate can be found out from the Pension Fund or from a notary. Fulfillment of this condition is mandatory within the framework of the law.
If you immediately include a definition of shares in the agreement, the registration process will be significantly simplified. Violations may be construed as criminal acts.
After purchasing a home, you cannot immediately sell the apartment. By court decision, housing may be subject to alienation in favor of the state.
Then, at best, you will have to return the money and redistribute the shares of residential property. In the worst case scenario, the process could end in prison.
Intentions to buy maternity capital, cash out funds or use them for other than legal purposes are criminal.
The family support program is controlled by the state, so funds must be used exclusively for purposes specified by law, including improving living conditions.
More details about maternity capital in the video:
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Discussion: 2 comments
- Ksenia says:
02/18/2017 at 04:03And I often see advertisements for “cash-out of maternity capital” - do they mean they are scammers? And I’m very interested in the condition that you can spend only part of the funds and leave the rest - is it possible to find out in more detail where and how the funds can be distributed? Because I gave birth to my second baby six months ago and now I’m thinking about how to spend my maternity capital. Mommies, please share information!
