Ways to Use Maternity Capital That Not Everyone Knows
Maternity capital is a measure of financial support for young families, but often even new parents don’t know where and how to spend it. Everyone is only interested in the opportunity to buy an apartment, invest the entire amount, or use the down payment from the proceeds from the birth of a child. However, there are other ways to use maternity capital, which are more interesting to those who already have housing.
Contents of the article:
Overall picture
The law allows maternity capital to be used for the following purposes:
- Improving housing conditions (housing must be located in Russia). Renovating it using maternity capital is not possible);
- Children’s education (funds must be used before they reach 25 years of age);
- Formation of the mother’s funded pension;
- Social adaptation and integration of children with disabilities into society;
- It’s often believed that maternity capital is “just money” given to parents and can be used at their discretion. This is incorrect! For example, no one is allowed to cash out the money or finance the purchase of toys.
However, there are certain nuances to using the funds that people are unaware of.
Tax deductions: take yours from the state
Specifics of using maternity capital
1. If you have a family with multiple members, you can use the funds for your children’s education. However, you must wait until the child turns three or three (or so) before you can use the funds to pay for their education. An exception is preschool education, where the funds can be spent immediately after the child’s birth.
However, many parents don’t realize that they can use maternity capital to pay for dormitory accommodation and their child’s education.
The funds are intended to cover the use of living quarters and utilities in the dormitory provided to the student during their studies. Capital funds are also intended to cover the maintenance, supervision, and care of children in preschool educational programs and/or in organizations implementing basic and primary general education programs.
Simply put, state support can be used to pay for children’s attendance in municipal or private kindergartens.
2. Maternity capital funds can be used to purchase the most complete life necessities for a disabled child. But! Only from the list of goods and services approved by the Government of the Russian Federation. Examples: equipment for training the musculoskeletal and vestibular system, stairs with landings, aids for training in daily personal activities, services in the reading department.
3. There are ways to receive partial money as benefits, but there are nuances!
If a second child was born (or adopted) in a family after January 1, 2018 and the average family income does not exceed two subsistence levels, such families have the right to receive monthly payments from maternity capital funds. Such payments are made by the family to which the certificate was issued. Payments are made for three years in the amount of the child’s minimum self-sufficiency amount.
Is it possible to cash out maternity capital?
Can maternity capital be cashed out?
Unfortunately, there is no legal way
cash the certificate for maternity capital does not exist! In addition to those already mentioned above. Do not be fooled by the offers of those who offer to change your certificate for money. This is a criminal offense under Article 159 of the Criminal Code of the Russian Federation illegal methods offered to gullible parents are often presented in the form of sham transactions and fictitious sales contracts. For such behavior, liability is established in the form of a 10-year fine in the amount of 120, 000 rubles and a fine in the amount of 1 million rubles. In addition, as part of civil proceedings, the offender is obliged to return the amount in cash to the capital of the capital.
Therefore, it is advisable to allocate funds for permitted purposes, rather than take risks and try to deceive the state, especially since the costs of buying a house and educating children are always significant, and additional funds will not be superfluous.
Ways to use maternity capital that not everyone knows about
