What to spend maternal money on. What can you spend maternity capital on?

Statistics show that more than 50% of people who issued a maternal certificate applied to receive it. The rest of the citizens are only thinking about where to spend the money, since they still have time - the program has been extended until the end of 2021.

Legislation strictly limits what maternity capital can be spent on. Using money for inappropriate purposes is not permitted and may become a reason for bringing the parent to liability. For example, a citizen may become obligated to repay funds spent inappropriately.

So what can you use maternity capital for in 2018?

The maternity capital program in Russia began to operate in 2007, after the president signed the relevant law. The text of the Federal Law indicates the main directions for the correct use of capital funds.

Throughout the entire period of the program, changes were repeatedly made to the federal law regarding the areas of use of funds. For example, one of the latest innovations is the possibility of using maternal capital to purchase goods necessary for the rehabilitation of a child with a disability and his integration into society.

The use of maternity capital is possible only if the following conditions are met:

• Distribution of funds according to family capital is made in application form. The application and accompanying documents and certificates are submitted to the local branch of the Pension Fund of the Russian Federation located at the applicant’s place of permanent residence.
• Allocation of funds from the state budget is carried out only by non-cash payment. You can't cash out that kind of money.
• As a rule, a family can apply for capital funds only when the second child (or subsequent child in the family, who gave the parents the right to apply for such a measure of social support) reaches three years of age.
• You can spend maternity capital funds on all children, and not just on the child who was entitled to a measure of social support.
• The main restriction for the use of funds is that the child reaches 25 years of age.

However, official registration of marriage between parents is not a mandatory requirement for using the certificate.

Initially, it was assumed that the amount under the maternal certificate would be constantly indexed. And such an increase in savings actually occurred before the economic crisis that occurred in 2015.

Due to the unfavorable situation, the Government decided to “freeze” indexation.

At the moment, it is known that indexation will also not be carried out until the beginning of 2020, while the validity of the program itself has been extended until the end of 2021. The amount of maternity capital is 453,000 rubles.

What can you spend it on?

Due to the fact that legislative norms are regularly improved, changes have been repeatedly made to the Federal Law regarding the permitted areas in which these funds can be taken.

Previously, it was possible to use money using a certificate only in 4 directions. Now their circle has expanded.

Improving living conditions

Maternity capital funds can be spent on improving the family’s living conditions. Most citizens use money in this direction, for example, to repay a mortgage loan with maternity capital.

Certificate funds can be invested in the following areas:

1. Construction of new buildings, including through joining a housing cooperative.
2. Reconstruction of residential premises.
3. Repayment of a bank loan, provided that the funds were received for the purchase or construction of housing.
4. Partial or full repayment of a mortgage loan (principal or interest, but no penalties). It is also possible to refinance a previously executed loan agreement, provided that the money is used as a contribution to part of the housing loan.
5. Purchasing part of a new or secondary home.

The main condition that must be met for using money in this direction is the allocation of a share in the acquired real estate to all family members, including minor children and unborn babies ( in the latter case, a special obligation is prescribed in the application).

Children's education

Parents can use maternity capital funds to pay for education for their children, as well as pay for any related services. It does not matter which child’s education the money will be used for.

When using maternity capital in this direction, the following conditions must be met:

1. An educational institution in which tuition will be paid for using capital funds must have a document confirming state accreditation.
2. Payment for education is made only if the child is studying at an institution located on the territory of the Russian Federation.
3. A student who is just starting his studies at an institute or college must be no more than 25 years old. Maternity capital funds can be used to pay for student accommodation in a dormitory and utilities.

In addition, the certificate can be used to make payments when children visit:

1. Sports schools, sections.
2. Musical and artistic institutions involved in education.
3. Courses on studying various foreign languages.

You can use capital money only to pay for a child’s education in the above-mentioned institutions, only if they have the appropriate license to carry out this type of activity.

Mother's pension

The entire amount of state support or a separate part of it can be spent on providing the funded part of the mother’s pension. This method of spending maternity capital is also very popular, because if you choose it, you can receive funds in the following way:

1. One time.
2. In the form of early payments (at least 10 years before retirement age).
3. For life in equal shares once the mother reaches the age established by law.

If the recipient of such a pension dies, all funds will pass to the heirs.

Payment for kindergarten

Most mothers who choose the best option for using maternity capital opt for a good private kindergarten. Paying for a child to attend such a preschool is indeed possible, but only if several conditions are met:

1. The institution must have a license.
2. The activities of a private kindergarten must be carried out within the borders of the Russian Federation.
3. The mother must have a contract in hand.

The contract must specify the cost of food, education, socialization, and ensuring the necessary hygiene standards. Such kindergarten services must be paid for.

Monthly benefit from maternity capital ( available from January 1, 2018)

Maternity capital is divided into parts and paid in shares only to needy families. Family income must be below 1.5 times the subsistence level for the second quarter of 2017 per each member.

This innovation regarding the division of the amount of maternity capital is valid only from the beginning of the year. Find out more about the possibility of using maternity capital in this way at your local Pension Fund office.

For the calculation, the formula D/12/N = K is proposed, where:

• D – the amount of total income, including pensions, salaries, benefits, scholarships;
• 12 – number of months in a year;
• N – number of people in the family;
• K – income per family member.

One-time cash payments

At the legislative level, it is possible to receive a one-time payment of 25,000 rubles. It can only be used if the relevant Resolution is issued, since such a payment is not provided annually.

Every year the Government makes a decision on the possibility of using this anti-crisis measure, which is recorded in a regulatory act. In 2018, you can take advantage of this support measure.

Features in regions

Certain regions of the Russian Federation provide for the possibility of obtaining their own regional maternity capital. As a rule, receiving this measure of support is possible upon the birth of a third child in a family, but in some regions of Russia, parents of the first-born can also take advantage of this right.

Funds paid under regional maternity capital programs are spent in the directions established by local Orders. For example, in some regions of the Russian Federation, the authorities do not in any way limit the options for using funds, which is beneficial to parents, and some regions require that the money be spent only on improving living conditions.

What you can’t spend maternity capital on

Maternity capital funds cannot be used in the following areas:

1. Drawing up a car purchase and sale agreement.
2. Purchasing a country house.
3. Acquisition of land.
4. Compensation for expenses spent on apartment renovation.
5. Payment for consumer loans.

Some of the above options for using money are being discussed in the State Duma, and perhaps in the future may become targeted areas for implementation.

When can you use maternity capital after the birth of a child?

As a rule, the use of funds for maternity capital is allowed only when the child who gave the right to apply for such a social support measure reaches three years of age. In some cases, the certificate can be sold before this, for example, to pay off a mortgage loan or pay for education.

This year, both the Russian government and the departments under its control became interested in the fate of maternity capital. Such close attention may have been caused by a decline in applications from citizens to obtain a certificate for maternal capital.

Maternal (family) capital is a measure of state support for Russian families in which, from 2007 to 2018 inclusive, a second child was born (or adopted) (or a third child or subsequent children, if at the birth (adoption) of the second child the right to receive these funds is not was issued). From January 1, 2015, the amount of maternal (family) capital is 453,026 rubles.

Note that in today's realities, 25% of Russian families do not use their right to receive maternity capital, considering the amount provided by the certificate to be insufficient to improve their lives. During the first half of the year, 352.5 thousand certificates were issued in the country, which is 81 thousand certificates less than the same period in 2016.

However, the program has not undergone any significant changes this year, rather the opposite. The only thing that is known for sure is that maternity capital will be provided to families until December 31, 2018 inclusive. This means that before this time a second (or subsequent) child must appear in the family.

Among the measures taken is also a reduction in the period for issuing maternity capital from two months to 10 days.

The most important news was the confirmation of the fact of freezing the amount of maternity capital until January 1, 2020, that is, the size of the certificate will not be revised for another three years “due to the difficult economic situation in the country and the large budget deficit,” the freezing regulation states. Let us remind you that the payment due at the birth or adoption of a second child is 453.26 thousand rubles.

Another important and unpleasant point was the news about the cancellation of a one-time payment from maternity capital in the amount of 25 thousand rubles, which was adopted in 2016 due to the worsening crisis. Note that the amount of maternity capital at the start of the program in 2007 was 250 thousand rubles. Thanks to annual indexation, its size increased by 80%. The last indexation was carried out on January 1, 2015 and amounted to 5.5% (from 429 to 453 thousand rubles).

Maternity capital in 2017 will remain whole and indivisible, since payments of monthly benefits will, according to officials, lead to inefficient spending of funds.

So for what purposes can maternity capital be used in 2017?

• Payment for child's education
• Formation of the funded part of the pension
• Social adaptation of disabled children
• Improving living conditions

And for kindergarten, and for sports school, and for nursery school

You can send a certificate for education from the child’s 3rd birthday until his 25th birthday. Moreover, it is not necessary to wait until the child grows up to enter a higher educational institution, as many people think. Maternity capital can be used to pay for a child’s maintenance in a kindergarten, nursery, or children’s clubs. Moreover, the institution can be either commercial or municipal, the main thing is that it is located on the territory of Russia and has all the licenses to carry out its activities.

For maternity capital, you can send your child to study at a music and art school, enroll in sports clubs, or participate in state educational programs with appropriate accreditation.

As for higher education, a child can not only study for maternity capital money, but also live in a dormitory at the university.

Pension: save and increase?

Directing maternity capital money towards retirement is another option for using maternity capital. The mother or father can transfer the family capital in full or in part to a private pension fund by submitting an appropriate application. A private pension fund is a non-governmental organization that is designed to store pension money, and even increase it. According to the law, Russians have the right to “pull out” money from the pension fund before retirement if they suddenly decide to use their maternity capital differently, for example, to spend the money on a child’s education or improving their living conditions. If the certificate holder waits until retirement, he can receive all the money in full in the “urgent payment” format.

Despite the seemingly favorable conditions, the first two ways of selling maternity capital are not particularly popular among Russians. Our fellow citizens do not want to wait until retirement age or for their child to enroll in a university, citing the unstable situation in the country and the inability to predict their distant future. But 95% of maternity certificate holders want to spend it on improving or purchasing housing.

Housing on credit and for a certificate

Since there is not enough capital to purchase at least some square meters, a common way to sell the certificate is to repay part of the mortgage loan. True, you should be especially careful here, since some credit organizations, when providing mortgage lending using maternity capital, overestimate the interest rate on the loan by 2-3 points. Otherwise, the presence of maternity capital greatly facilitates the issuance of a mortgage loan, moreover, it allows you to use the certificate as a down payment. Another advantage of this option for implementing maternal capital is that you do not need to wait until the child is three years old.

It often happens that a young family has its own home, but after the birth of a second child there is a need to expand their living conditions. There are four legal ways for them: reconstruction of the house with a concomitant increase in the total area; buying a house; home construction; contribution of maternal capital funds as a contribution when participating in shared construction.

The provided government assistance can be used to pay for the work crew; purchases of building materials; other expenses related to construction and repair work.

For disabled children - strictly according to the list

From January 1, 2016, a maternal certificate can be used for social adaptation and integration into society of disabled children. Money can be directed to any child in the family, natural or adopted, without waiting until three years from the date of birth or adoption of the baby.

Unfortunately, maternity capital for disabled children cannot be used at your own discretion and based on the individual needs of each child. The text of the law stipulates that the certificate can only be spent on those goods and services for children with disabilities that are specified in the specific list, developed by the Russian government.

In addition, maternity capital funds can only compensate for the costs of goods and services that the parent independently purchased for a disabled child. That is, parents will have to pay for the construction of a ramp at the entrance to the entrance, the purchase of a special bed, means of communication or sports, or purchase other goods or services. And only then wait for the pension fund’s decision on compensation for expenses incurred.

Law for show

Parents of children with special needs were at first happy about the new law, but having understood all the intricacies, they realized that many conditions and restrictions simply do not make it possible to use the certificate for good purposes, in particular for the treatment and adaptation of a sick child. So the majority of this category of people believes that the law was adopted only formally. “... The law was adopted for show. Absolutely nothing is possible for my child... I was hoping that they would be allowed to spend maternity capital on dolphins - alas and ah! It’s very sad and offensive,” writes Irina, commenting on the law on the profile website.

“I am the father of a disabled child. To increase mobility, the government could allow the purchase of a car with maternal capital - one working person in the family will never earn money on a car. Since domestic cars already cost half a million rubles! Not to mention housing, which costs 2-3 million! There are not enough quotas for expensive treatment for everyone - and again maternity capital cannot be used here,” writes Ilgiz.

Although, of course, it cannot be said that the law does not work at all. Someone still manages to use maternity capital funds to rehabilitate a disabled child. For example, the grandmother of a boy diagnosed with cerebral palsy from Rostov-on-Don was lucky. Having learned that maternity capital is now being given to disabled children, she turned to the pension fund to compensate for the money spent on the treadmill. The grandson needs to strengthen his weak legs. The cost of the simulator was compensated, and the grandmother, being the only relative of the baby, received 55 thousand rubles spent.

Housing with a certificate is not for everyone

It can be difficult to spend maternity capital funds on the coveted new home. There is not enough money to buy an apartment or house, and taking out a mortgage for a family with two or more children is often unaffordable.

“I don’t understand at all why the state allocated this certificate. What is the use of it if it lies like an ordinary piece of paper - you can’t spend it, nothing... Children can’t even buy anything with it. Houses cost from 600 - 800 thousand rubles. What to buy for 453 thousand, a barn?” writes Victoria from Kaliningrad, commenting on the law on maternity capital.

Many mothers, especially single mothers, complain that the law has very strict limits that limit the possibilities of spending allocated funds. For example, you cannot spend the allocated money on renovating old, existing housing.

“I’m a single mother, my husband and I are divorced, he doesn’t pay child support and doesn’t help! We live in a wooden house. The floors will soon collapse underground. There is no money to make them. It's cold at home in winter. Windows need to be replaced and walls need to be insulated. I would, of course, be very happy if they gave me capital for major renovations of my home,” suggests Natalya.

It is true that there are those who manage to use maternity capital funds and invest them in an apartment or housing. Svetlana, a Muscovite, could not find money allocated from the state for many years. I was looking for a house closer to Moscow, but I still couldn’t find a suitable one. And now, six years later, I finally bought it, it’s far from the city, and the condition is not ideal, but still better than nothing. Svetlana already has three children, she is divorced from her husband, she does not receive alimony, life is difficult, but the house she bought gives her hope for a peaceful old age. “When I’m old, I’ll go live there,” the woman dreams.

Irina also always dreamed of living in a private house. But in real life in Tyumen, the woman did not have any housing at all, and lived with her daughter in rented apartments. And when the second daughter was born, and Irina received a certificate for maternity capital, hope dawned. It was impossible to buy a house within the city limits at the cost of maternity capital, so the woman decided to look for housing in the villages.

Having visited all the nearby villages in her region, and even the neighboring ones, Irina became homesick. House prices there, although they were significantly lower than in Tyumen, still did not allow her to buy a home. The houses for which there was enough money were uninhabitable. A mortgage or any other housing loan was out of the question, since Irina did not have an official job, and her earnings were unstable.

Having traveled around villages and villages to no avail, the woman gave up trying to buy a home. But then an opportunity arose. A friend was selling a dorm room.

“I agreed with the landlady that I would pay the remaining fifty thousand for the room in installments within six months, and moved into a room with an area of ​​22 square meters. Of course, this is far from what I dreamed of, but still at least some kind of housing,” Irina summed up her apartment epic.

It may not be fair, but it’s real

Having pushed around with a certificate that seems to have money on it, but there is nowhere to put it, people, often out of desperation rather than for profit, decide to take half measures.

And here intermediaries come into the picture between those who want to cash out maternity capital by purchasing a house and sellers who agree to inflate the amount of the property being sold in the purchase and sale agreement.

An intermediary, most often a realtor acting as a private individual, finds houses or plots of land for sale at a very low price in remote villages. And he agrees with the seller that the purchase and sale agreement will indicate an amount equal to the amount of maternity capital. As a result, the pension fund transfers the entire amount of the certificate for the purchase of real estate, but only part of this money is given to the seller, another amount (from 50 to 80 thousand rubles) is paid by the certificate holders to the intermediary, the rest of the money (most often about 300 thousand rubles) remains in their personal use.

As a result, the family owns both real estate and cash. And any audit of the pension fund will confirm that the family has real estate purchased with maternity capital.

From the point of view of the law, everything is more or less smooth, but in reality many difficulties arise. Firstly, the new housing will most likely be located more than one hundred kilometers from the city and the family’s actual residence. Secondly, selling such housing, even for little money, will be very problematic, because according to the law, the owners of real estate purchased at the expense of maternal capital must be not only parents, but also their young children. Nevertheless, this scheme for selling maternity capital is common in many regions of the country.

Photo - photobank Lori

Maternity capital in 2019 is provided in accordance with the new Federal Law No. 418. The law specifies the amount of state benefits equal to 453 thousand rubles. The funds are allocated to families with two children and parents with many children whose children were born between January 1, 2007 and December 31, 2021. You can receive money from a maternity certificate for purposes established by law. The legislator regularly expands the scope of legal use of allocated funds and simplifies the scheme for obtaining material support.

Changes in 2019

One of the positive innovations is receiving monthly cash amounts until the child is 1.5 years old. It will become easier for parents financially at the initial stage of raising a child. The decision was made based on numerous requests from interested citizens, and is valid for the baby’s date of birth after 01/01/2019.

Major amendments to current provisions:

• the upper limit for date of birth has been raised until the end of 2021;
• the right to receive cash monthly is possible at 1.5 minimum wages per family. Money is provided for the maintenance of children under 1.5 years of age;
• procedure for using the certificate.

Restrictions on some areas of use of parental funds have been lifted. The rights of parents have been expanded and the procedure for paying maternity capital has been simplified.

Since this year, the following opportunities have appeared:

• preschool education from birth. For example, you can pay for nanny services that are documented;
• Restrictions on choice and payment for school education have been lifted. If a student attends a non-state institution, this does not serve as a reason for refusing to withdraw funds.

The one-time benefit in the amount of 25 thousand rubles from the maternity certificate money has been canceled since 2019.

The certificate is issued in the amount of 453,026 rubles, the size is the same for all recipients. The surcharge for women who gave birth to children under 35 years of age has been canceled and ceased to apply. The money that can be cashed out from a certificate for a child under 1.5 years old differs in each specific case. Payments depend on the average monthly income of a family living in a particular region. For the current year, data for the 2nd quarter is taken into account. 2017. On average, the benefit amount is about 10 thousand rubles for most federal subjects.

Payments are provided to citizens who apply to the Pension Fund and confirm their rights to monthly contributions. You will need to provide income certificates for the last year, including financial income of all family members. The list of funds taken into account when assigning state support has been approved by the government. If desired, the list can be viewed at the Pension Fund office at your place of residence. Most compensation payments do not count towards the total family income.

Maternity capital: requirements for the applicant

You can contact the Pension Fund for the certificate you are owed at a convenient time before your children reach adulthood. Parents who meet the following requirements can receive government support:

• the child was born between 2007 and 2021;
• mother and child have Russian citizenship;
• the family is registered in the Russian Federation.

For a monthly benefit, additional requirements will be required:

• the second or subsequent child is under 1.5 years of age;
• an income certificate confirms a coefficient of 1.5 minimum wages in a given territory. Figures for the previous year are taken into account.

The listed requirements must be supported by documents; current information is accepted for verification. In doubtful situations, registration of maternity capital is postponed until the controversial issues are clarified. For example, the applicant’s passport may be expired; after restoration of its legal significance, the document is accepted for consideration.

After the birth of the child and receipt of administrative documents, the mother can contact the MFC or Pension Fund. In both cases, a package of documents is required:

• applicant's passport;
• certificates of all born and raised children;
• SNILS for the whole family;
• Marriage certificate.

If we are talking about adoptive parents, then documents on adoption are attached. The father can assert his rights in cases established by law. Maternity capital is issued to the father if the mother is not alive, she is deprived of her rights or is an incapacitated citizen. Applicants can apply in person, by mail or by submitting information online through government services. After verification, you will need to come in person to the Pension Fund office at the recipient’s place of registration to receive the certificate.

Pension service employees are given three months to strictly check the submitted package of documents. A legal representative with confirmed authority may receive a certificate. If dubious information is revealed during the inspection, the applicant will be asked to clarify this point. The received certificate is a legal document of strict accountability. In case of damage or loss of a document, a duplicate is issued at the request of the owner.

Upon application of the mother, the opportunity to receive benefits from the amount of maternity capital is provided. You will need to provide a certificate of income for the previous year from the employer of the father and mother. Employees will make calculations and, based on the results, will respond to the possibility of receiving funds.

The special conditions are:

• the age of the child up to 6 months at the time of application will allow you to receive accruals starting from the moment of birth;
• after six months, the money is transferred from the moment the application is submitted.

This approach is due to the fact that mothers can be extremely busy in the first months after childbirth. Payments are not assigned automatically; the owner of the certificate must prove and declare her right. If it is impossible (income more than 1.5 minimum wages) or there is no desire to receive financial support immediately after childbirth, the amount provided by the certificate will remain unchanged.

What to spend maternity capital on

The rules of use remained the same, the scope of children's expenses for education and medical services expanded. The debate over purchasing a family car has not been resolved positively.

The directions for using the funds were determined:

• acquisition of living space;
• study and educational goals;
• rehabilitation activities for people with disabilities;
• mother's pension.

Program participants are given the opportunity to independently choose their optimal goals. Many families spend their children's capital on purchasing an apartment or major renovation of existing space. The program provides options for purchasing capital real estate; land plots cannot be purchased with the allocated money. Maternity capital can be spent on paying off mortgage interest and the down payment on a mortgage for a new building.

There is an order: employees check the presented object and control the transaction. After concluding an agreement and registering the transaction with Rosreestr, the money is transferred to the seller. The phrase “buy/sell for maternity capital” has become familiar, the scheme has been worked out and is transparent for execution. Purchasing a mortgaged property in a new building is possible taking into account maternal funds. Most banks accommodate families with children and enter into deals to purchase capital assets.

State funds can be used to educate all children in the family. You can pay tuition fees from kindergarten to college at the request of the certificate holder. Money is transferred to the educational institution by non-cash payments upon application to the Pension Fund. Restriction: the organization must be located in the country and have the appropriate licenses. An agreement for the provision of teaching services is concluded, and after approval by the supervisory department of the Pension Fund of Russia, translations begin.

The funded pension for the mother will be increased by the amount of allocated state assistance. When retiring, a woman can count on an increase in her pension savings. Having a child with a disability, you can spend money on treatment and rehabilitation. Maternity funds are spent on any child in the family, and supporting payment documents are provided to the fund.

Receipts and checks allow you to cash out this amount from software. The rules apply to an adopted child with a disability if there are two or more children in the family. Several minors with disabilities will be able to receive individual financial assistance if there are medical indications.

Using illegal cash withdrawal methods will result in criminal prosecution. The legal scheme is the following: take a bank loan for the purchase of living space and cover the obligations with the money of the certificate. If the loan size is equal to or less than government money, then a transparent and legal scheme will solve the family's housing problems.

Options for purchasing a property at a fictitious price are calculated by government agency employees. The woman is deprived of her certificate and held accountable. Employees have the right to monitor a suspicious transaction and go to the place of purchase. It is recommended to reconstruct the home, purchase a country house for a family vacation, or take the necessary actions. You shouldn’t go against the law, money has a purpose. You cannot legally receive cash; you should remember the requirement not to violate the order of the federal program.

How to get maternity capital in 2019?

Welcome to website. Most families, after receiving a maternity capital certificate, use it to improve their living conditions, that is, they purchase houses and apartments with the help of funds from the federal budget or with the involvement of credit organizations. But this goal is not the only one for which this capital can be spent.

After recent changes in legislation that relate to maternity capital, there are 5 purposes for which they can be used. In 2018, another goal began to work for which the certificate can be spent.

The federal law “On additional measures to support families with children” clearly spells out all the necessary aspects of managing maternity capital. There are a number of rules for the implementation of this state support:

• Who has the right to use capital? Citizens who have received a certificate in hand, who have submitted an application to the branch of the pension fund and received permission from it to use the funds, have the right to dispose of capital.
• What information is included in the application for the sale of capital? It must indicate all the purposes for which it will be used; there may be several purposes, but the cost of the purposes indicated in the application should not exceed the amount that is on the certificate; the difference is paid from the applicant’s own funds.
• Besides parents, who else has the right to manage capital? Adoptive parents, guardians and trustees, as well as the child himself, can dispose of the capital after reaching the age of 18, or after the emancipation procedure is carried out, if the child is left without parents and is in an appropriate institution.
• Purposes for which capital is used? Capital can be used in several directions - improving living conditions, educational goals of children, mother's pension, adaptation of disabled children and monthly payments.
• How to apply for the use of capital? The application is submitted in accordance with the rules of the Ministry of Labor to the territorial branch of the pension fund at the place of registration or actual stay of the applicant.
• What is the deadline for receiving capital? The application must be submitted no later than 3 years from the date of birth of the child or his adoption.

In accordance with the rules, it is clear that capital is issued only to those families in which a second child appeared, that is, was born or adopted. From the birth or adoption of the second child until he reaches the age of three years, it is necessary to obtain a maternity capital certificate. It can only be directed towards goals that are established at the legislative level; more about this below.

Where can you spend maternity capital in 2019?

In accordance with the federal law “On additional measures to support families with children,” there is a prescribed list of what maternity capital can be spent on:

1. Optimization of living conditions. Improving living conditions involves the purchase of living space or the construction and reconstruction of a house.
2. Payment for children's education. That is, for expenses that are associated with paying for educational services, as well as other expenses, for example, paying for a hostel or utilities.
3. Mom's pension. Maternity capital can be transferred to the funded part of the mother’s pension.
4. Purchasing goods for disabled children. Maternity capital funds can be used to purchase goods that are necessary for the social adaptation of disabled children. This area is regulated in accordance with government decree.
5. Receive payments that are paid monthly. Those who have a child born or adopted since 01/01/2018 are entitled to these compensations.

The sale of capital can occur simultaneously for several purposes, but all of them must be specified in the application for receiving funds from the pension fund.

Most families are concerned about improving their living conditions. That is why the bulk of the issued capital is used to purchase an apartment or house.

Improving housing conditions means purchasing finished housing, both on the primary and secondary markets, or independently building a house using your own funds or with the involvement of credit institutions or banks.

Using maternity capital to purchase housing is the easiest way to invest in housing. You can also enter into any agreement that is legal.

When concluding a transaction in the general case, it occurs as follows:

• A seller and a real estate object are found that will be purchased using maternity capital funds, then its value is determined.
• A purchase and sale agreement is concluded, which specifies a deferred payment.
• An application is written to the pension fund to transfer funds from maternity capital to the seller’s account.
• If the cost of housing is higher than the capital amount, then the buyer must pay the difference from his own funds.
• The money will be transferred by the pension fund within two months from the date of submission of the application to the seller’s account, which is indicated in the application.

If a house is purchased with maternity capital, then the entire purchase process occurs in the same way. You can purchase any residential property with maternity capital, but when purchasing a residential property, you should pay attention to the following nuances, which are of particular importance when registering maternity capital funds:

• The purchased object must be located only in Russia.
• Once all the documents have been completed, the purchased housing should be registered as the property of all family members; this is mandatory. All shares must be equal.
• Transfers of funds are made only by bank transfer; if the buyer thus tries to cash out capital, this will be contrary to the law.

How to spend capital on building a house

In accordance with the law on maternity capital, certificate funds can be used to build a private residential building, but you need to know how to spend maternity capital on building a house. The facility to be built must comply with the following rules:

• Be capital and suitable for permanent residence.
• To be built on a plot of land that was registered for private construction.

The land on which the house will be built must be purchased and registered as the property before the owner of the capital decides to dispose of the funds. It is prohibited to purchase land with certificate money.

Construction work can be carried out with the help of a construction team, or only one’s own forces can be used. Money for construction is transferred in a certain order:

• If the construction work is carried out by a special team, then it is necessary to conclude a construction contract, which, together with the application, is submitted to the pension fund office, after which the funds will be transferred to the organization’s account. Review of documents takes from 30 to 60 days.
• If the construction is carried out on our own, then the money is transferred in two stages. At the beginning of construction, the first part of the money is transferred, but not more than 50% of the capital amount. After 6 months, you must bring documents confirming the construction, on their basis the second half of the money will be transferred. The money is transferred to the account of the certificate owner.

If construction will be carried out until the capital can be used, that is, until the child reaches the age of 3 years, then it is necessary to save all payment documents. They are attached to the application, which is written to the pension fund, for the use of capital.

We use capital to pay off the mortgage

A mortgage loan for housing and maternity capital is closely linked by the federal law “On State Support for Families with Children,” as well as other related documents.

In accordance with the law, the use of capital can be in the following cases:

1. Payment of the down payment on a loan or loan that was issued for the purchase of living space.
2. Paying off mortgage debt.
3. Payment of interest on a mortgage loan.

Today, it is possible to obtain loans and credits through maternity capital in credit institutions or cooperatives, while issuing loans through microfinance organizations is prohibited. Most often, banks have special offers for buyers through maternity capital.

A big advantage when applying for a mortgage through capital is that it can be used to buy a house or apartment without waiting until the child turns three years old.

In other words, immediately after receiving a certificate from the pension fund, the owner can immediately contact a credit institution to conclude a mortgage agreement and make a down payment, or to pay for an existing mortgage loan.

Also, another advantage is the amount of capital; in 2019 it is 453,000 rubles; as a rule, this amount is enough for the down payment when taking out a mortgage loan, because it ranges from 10 to 30% of the cost of living space.

The funds can be used regardless of when the second and subsequent child was born or adopted.

Spending maternity capital to pay for kindergarten

In accordance with government decree, funds from maternity capital can be transferred to the account of a private or public kindergarten subject to the following conditions:

• The kindergarten has a license to conduct preschool educational activities.
• The kindergarten is located on the territory of Russia.
• A corresponding agreement was concluded between the kindergarten and the parents.
• Payment is made only for the maintenance of the child in kindergarten.

But it will not be possible to fully pay for a kindergarten, even a state-owned one, with the help of maternity capital. Child care includes nutrition, education, socialization and provision of necessary hygiene standards. This list does not include educational work, payment for teachers, and additional clubs and sections.

According to the law, the use of capital is impossible until the child reaches the age of 3 years. That is, if maternity capital was received for the second child, then it will only be possible to pay for the nursery group for the third child.

We spend mat capital on children's education

There is one more area on which to spend maternity capital in 2019 - this is paying for the paid education of one of the children at school, lyceum, gymnasium and other educational institutions under a postgraduate and master's degree program.

As a result, it turns out that not only the child for whom it was received can use the capital. The capital can be used to pay for the education of any of the children, both natural and adopted. So the certificate is intended not for one person, but for all family members.

In accordance with the Government Decree, in order to use capital to pay for education, a number of conditions must be met:

1. Training must be provided only in a program that has state accreditation.
2. The educational institution must be located only on the territory of Russia.
3. At the time of starting school, the child must be no more than 25 years old, that is, the child may not start studying immediately after school.

Training can take place in state, municipal or private educational institutions. Before concluding a training agreement, you should make sure that the educational institution is willing to wait two months for payment while the pension fund transfers funds to the educational institution’s account.

Also, with the help of capital, you can pay for other services that relate to training, that is, payment for a hostel or utilities, but the money is not used for food.

With the help of maternity capital, you can pay for sports clubs, music or art school, and language courses.

Maternity capital can be invested in the mother's future pension

In accordance with the law, funds from maternity capital can be sent to the funded part of the mother’s pension, either in full or in part. The pension can be formed in state and non-state funds. Such an investment becomes most profitable if a woman takes care of several children in a row, since parental leave is not counted towards the total length of service.

If a woman wrote an application for transfer to a pension, but changed her mind before reaching retirement age, then she has the right to withdraw the funds and use them for other purposes.

If the owner of the certificate did not direct his funds to one of the purposes, then he has the right to take them into account in the pension payment upon retirement.

In accordance with pension legislation, funds allocated for retirement can be received in one of the following ways:

1. Make an urgent payment, but not less than 10 years.
2. Make a one-time payment.
3. Arrange for unlimited lifetime payments.

If the owner of pension savings does not live to retirement age, they can be inherited by the child’s father or by the children themselves.

This option is not popular, since Russians do not trust the intended use of money after a long period of time, because it may depreciate.

Shared home purchase

The law specifies one more purpose where maternity capital can be spent in 2019 - the shared purchase of housing. The pension fund approves of the acquisition of a share in a multi-room apartment, where after registration of the share, the owner of the capital becomes the sole owner of the apartment. In some cases, this acquisition may become a source of small income.

According to the law, purchasing a share from relatives is no different from purchasing from strangers. The former owner must be evicted from the apartment if at the time of the transaction the owner of the capital becomes the full owner.

But buying shares between spouses is not recommended. You can also buy a room with capital, but this cannot be a share in a one-room apartment. The room must be completely isolated from common areas, and the accounts of the co-owners must be separate.

But it’s not always possible to purchase a room in a dorm, that is:

• If the hostel has the status of a residential building, and the room is privatized, then the transaction may be approved.
• But if the hostel is classified as specialized premises, then purchasing a room becomes impossible.

You can also purchase shares using a mortgage loan; banks approve such transactions. But only if the owner provides documents that after purchasing the last share he will become the sole owner of the apartment, he will be able to take out a loan to purchase a share in the apartment.

Capital cannot be spent on renovating a house or apartment

Many people ask whether maternity capital can be spent on repairs. There are laws that have not been adopted, which talk about carrying out repair work in a house and apartment, that is, the supply of communications, water supply and gas, if they are not equipped. Since this is important for the comfortable life of the family and the health of children.

Despite the fact that major renovations improve the family's quality of life, they do not solve the problem of housing, so this proposal was never accepted. Money from maternity capital cannot be spent on repairs in a house or apartment.

According to the law, capital can be used for the reconstruction of residential premises, but it is very different from renovation in the following ways:

• When carrying out reconstruction, the layout of the building changes, that is, its area, size and number of rooms; walls and partitions can be moved, as well as openings can be cut. This means setting up an attic, adding a balcony, or dividing one room into several. During repairs, these things are not done.
• During reconstruction, the purpose of the building may change, that is, a warehouse or store is converted into a house or apartment; renovation does not imply such procedures.

In other words, if redevelopment is planned for the house, it will be included in the reconstruction class and will require approval from the BTI. It is quite possible to pay for the reconstruction using maternity capital funds if the living space is increased. But if you simply plan to change the windows, insulate and plaster the walls, then this is considered a renovation.

Mat capital cannot be spent on buying a car

Buying a car is not one of the purposes for which maternity capital can be spent. Since this does not apply to improving living conditions or to any other purpose permitted by law, and with 20,000, which can be received as a lump sum payment, it will not be possible to buy a car.

As a result, a car is not purchased with maternity capital, although this could solve the problem of movement for most families, since the amount of capital can be used to purchase a new car and not raise your own funds.

This goal has been discussed many times, despite a large number of advantages, it has disadvantages, and it is rejected if there are some difficulties:

• Possibility of selling your car quickly to cash out.
• Threat of car theft or damage in an accident.
• Rapid breakdown of machines, especially those from domestic manufacturers.

The last time a proposal to introduce this goal was created in 2014, for the purchase of domestic cars, but it was canceled due to inconsistency with the Constitution.

Buying a dacha or an empty plot of land is impossible with the help of maternity capital

In accordance with the law on maternity capital, it can be used to improve the family’s living conditions at the expense of public funds. But it is prohibited to purchase a dacha or land plot on them, since such a purchase will not help improve living conditions for several reasons:

• Even if the acquisition of a plot of land is carried out exclusively for construction, it is unlikely that a family with an average income will be able to build a house in the near future.
• Living in a dacha is most often impossible all year round, but only in the summer.

Therefore, those who want to buy a dacha with maternity capital should better look for a house for permanent residence.

Also, the certificate is not used to purchase a plot of land without buildings. A permanent building must be located on it, only then will the pension fund approve the transaction and transfer the funds. But the cost of the site will not be paid from capital funds, it is paid from own funds.

There is a significant difference between a dacha and houses, it is as follows:

• The house is located on a plot of land that is intended for individual development. The location of the dacha is made on an allotment for garden construction.
• A residential building has a strong foundation and walls, while in country houses these structures are installed in lightweight ones.
• The house must have electricity, gas and water, while in country houses these communications may be completely absent.
• Also, these two structures undergo different registration in Rosreestr.

Consideration of the bill on expanding the purposes for the use of maternity capital gave clear and negative answers to the following questions:

• Is it possible to buy a plot of land with capital?
• Is it possible to use maternity capital to pay for the treatment of children and mothers?
• Is it possible to use capital to make repairs in the house or carry out the necessary communications?

It was believed that purchasing a country house would allow the family to provide themselves with food and proper rest, but this proposal was rejected by insufficient votes.

A consumer loan cannot be taken out against maternity capital.

Many families are interested in whether there are additional goals for where to spend maternity capital in 2019, or whether it is possible to obtain a consumer loan using the funds from the certificate.

The possibility of obtaining a consumer loan would have a positive impact on the well-being of many families, and would also allow the money to be used by those families who do not have additional income. Very often, maternity capital is not used precisely because the children’s education is not coming soon, and it is not possible to purchase housing due to a lack of funds.

Very often, consumer loans are taken out at a time when it is impossible to obtain a mortgage loan; the bank does not approve a loan to purchase an apartment.

Even if the owner of the certificate can bring to the pension fund proof that the consumer loan taken was aimed directly at purchasing living space, it will not be possible to transfer funds from maternity capital to pay off such debt. Since by law it is prohibited to repay non-mortgage loans with maternity capital.

There are cases when families were able to prove in court that the consumer loan taken was intended only for the purchase of living space, and the certificate was transferred to pay off such debt. But there are very few such cases, since this creates judicial precedents, and not every person wants to waste time going through the courts.

As a result, it turns out that the family will not be able to purchase household appliances or furniture on credit using maternity capital. It will also not be possible to pay off a consumer loan with funds from maternity capital, which was issued for repairs in an apartment or house, since these purposes are not provided for at the legislative level.

But you can pay off debts on consumer loans with the help of regional maternity capital, which, unfortunately, is not provided in every region.

The latest innovation in using maternity capital funds is the allocation of funds for the purchase of goods and services that can help the social adaptation of disabled children. In all other cases, the goals for using maternity capital remained the same.

Although the State Duma has proposals for additional purposes, they are still under consideration, so capital can only be used for that small number of purposes that can improve the lives of most families.