Cashing out maternity capital by legal means

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Government aid looks like a simple process to many citizens. But given the scale and prospects, such issues must be worked out so that offenses in this area are excluded. The system of issuing maternity capital is a vivid example of this.

Cashing out maternity capital by legal means

Maternity capital is a type of state support for young families. The program has been operating since 2007. At the time of implementation, the authorities intended to stop payments in 2018. However, the conditions have changed, and now young families can count on material support for the birth of children until 2021. The family has the right to dispose of the grant after 3 years from the date of receipt of the certificate.

Who's supposed to?

Targeted beneficiaries are families that previously received government subsidies of a different nature. Another important criterion is the Russian citizenship of the recipients. The child in the family should not be the first. Seconda child can be either born or adopted. The recipient can be either the mother of the child or the father. Men who have adopted a second child are also eligible to receive maternity capital.

If, for one reason or another, parents lose the right to a child, then maternity capital is not canceled, and the right to receive it passes to the child.

It should be borne in mind that the state material support to the family relies on a one-time basis. What you can spend maternity capital on is a separate issue. Directly the process of obtaining is carried out through the issuance of special certificates. They are issued upon presentation of a civil passport and birth certificate of the child.

Maternity capital refers to target types of financing. It must be used:

• for buying a home;
• to improve the conditions of existing housing;
• when applying for a mortgage loan.

The difficulty of using maternity capital lies in the fact that it is impossible to get cash in hand. In addition, a ban on such attempts is imposed at the legislative level. But what about families whose housing problem is not as acute as the need for cash? How to legally cash out maternity capital in this case? Is there such a possibility?

What is the reason for the ban?

At first glance, it seems illogical that assistance is due, but cashing out maternity capital is impossible. However, the ban justifies itself on the other hand.point of view.

In the early days of the program, parents had the ability to cash out on the first request. However, practice has shown that in most families the funds were not used in rational ways. For example, if a father or mother suffers from alcoholism, drug addiction or is unemployed, then the money was wasted. Indeed, by default, maternity capital relies on dysfunctional families. It turned out as if the state financed not the interests of the child, but the whims of adults. The state has no other levers of influence on the rational use of funds, except for imposing a ban on non-targeted use.

Can I cash out part of the maternity capital? Later, parents began to ask this question, and such an opportunity arose. The year 2009 was distinguished by the outbreak of the economic crisis. Unemployment rose while food prices rose. Then the Duma decided to alleviate the fate of dysfunctional families through the cash issuance of part of the maternity capital. A fixed amount of 12,000 rubles was determined.

Then, the cashing out of maternity capital continued until 2011. The second stage of cashing out permission took place in 2015. The amount was already much more - up to 20,000 rubles were supposed to be on hand.

Those families that have not used the right to partial cash out can apply to the FIU. If more than 3 years have not passed since the certificate was issued, then they can count on a tangible material investment in the family.

Legal ways to get money

Even in the legal cases of using maternity capital, the issuance of cash in hand is not provided. A citizen must prepare documents for resolving housing issues in the proper manner and form, submit them together with the application to the FIU and wait for a positive decision.

However, not all banks have the right to work with maternity capital. Financial institutions where you can legally cash out maternity capital are as follows:

1. Sberbank.
2. "Opening".
3. "Absolut Bank".
4. Alfa Bank.
5. "VTB 24".
6. "Rebirth".
7. "Dominant".
8. "Unicredit".

The most popular are VTB 24 and Sberbank. So, how to legally cash out maternity capital through a bank?

Application for funds for the construction of a house

The state subsidy for the second child in 2018 is 453,000 rubles. Obviously, this amount is not enough to build a full-fledged house with decoration. But cashing out maternity capital for these purposes can serve as a basic help on the way to your own housing. An alternative to traditional brick houses is prefabricated frame houses, the cost of which varies from 300,000 to 500,000 rubles.

In any case, the decision of the family to build a house is important. The construction of a solid house with large areas is whatWhat can you spend maternity capital on without hesitation. It is assumed that the family already owns the land, has a project for the future home and is ready to invest some of their own funds.

The important point is the correct design of the land. To do this, cadastral work must be carried out on the site, land surveying must be carried out and documented.

A family may decide to hire a construction team or build their own home. But the contract for the provision of construction services must be concluded. Cashing out maternity capital requires the provision of these and other documents.

If the family chose not to use the services of a construction team, but intends to complete the construction on its own, then the money will be issued in two stages: the first part after the submission of documents, the second part - upon completion of the first stage of construction.

The list of documents to be submitted to the FIU should include:

• A document of title to a land plot.
• Copy of the contract with the construction team.
• Permission of local authorities for the construction of housing stock.
• Details of a bank account where you can cash out maternity capital.
• Common passports of spouses.
• Children's birth certificates.
• Marriage certificate.

Get a mortgage and use maternity capital

Maternity capital serves as a good base andbuying real estate through mortgage lending. It should be remembered that funds are not handed out. The process of applying for a mortgage is slightly different from that of a typical mortgage. The advantage of this method is that there is no need to wait 3 years.

First of all, you should choose a bank that cooperates with the FIU in terms of maternity capital. At the next stage, you need to find an apartment that suits the family in all respects: location, square footage, cost, and other parameters. Mortgages with maternity capital are issued for both primary and secondary housing.

In this case, you can cash out maternity capital for housing by depositing the amount as repayment of loan funds. The money can be used as a down payment on a mortgage or, if you already have a mortgage, the funds can be used to pay off the balance.

Deal nuances

Funds will be transferred to the bank after the transaction is completed. When the apartment is selected, the documents are checked, the bank approves the transaction and is ready to allocate funds, an agreement is concluded with the buyer. The document, in addition to the standard wording, should indicate that the buyer must apply to the FIU with a request to transfer maternity capital to the bank within 6 months after the transaction has been completed.

This procedure is due to the fact that documents for cashing out maternity capital through a mortgage require a real estate purchase and sale agreement registered in the USRN. Considering the fact that the process of formalizing banking procedures and registration with government agencies lasts aboutmonths, then it is quite possible to meet within the specified period in order to ensure the transfer of funds to the bank.

In this case, the interests of the seller will not suffer at all. He does not need to wait for the transfer of MK to the bank. The bank will pay him.

It is advisable for the buyer to apply to the FIU as soon as possible, since before the receipt of funds, the repayment amount is calculated based on the full cost of borrowed funds. Upon receipt of funds, recalculation occurs automatically.

When buying and building, there is one important condition - housing must be registered for all family members.

Get money for home improvements

Another option for realizing the rights to state subsidies is the reconstruction of a house for maternity capital. It is assumed that the family already has their own housing, but needs to improve conditions. But what are the criteria for determining the need for improvement? Lack of repair according to European standards, design or other indicator?

The legislation establishes the norm of living space per person. The minimum figure is 12 square meters. But for a family there are other criteria. So, if two people live in a family, then housing should have at least 42 square meters. In addition, housing must have separate rooms for domestic needs and have windows. If, when calculating for each family member, the coefficient is less than the norm, then such housing is considered to be in need of improvement. Such information must be compiled by the local municipality.

In this case, the reconstruction involves the expansion of living space, the improvement of technical properties or the addition of a floor, if we are talking about a private house. Cosmetic, major repairs or replacement of plumbing are not included in the reconstruction, respectively, in this case there is no possibility to use the subsidy.

An application to the FIU can be submitted in advance or upon completion of work. If the family decides to receive maternity capital upon completion of work, then checks, receipts, an agreement with contractors and other documents proving the work performed should be kept.

Illegal ways to watch out

You can often see ads promising to cash out government subsidies without complying with legal requirements. Moreover, these persons conduct their activities as legal companies. For their work, they take a certain remuneration in advance from citizens.

There are cases when such organizations, having received maternity capital through corruption, demanded a significant part of the subsidy from certificate holders. If a citizen takes this step, then before the law he has no chance of protection, since he himself is the initiator of the violation of the law.

Given such phenomena, in 2013 the Government imposed pen alties for illegally receiving state support. According to the new rules, the illegal cashing of maternity capital is classified as a criminal offense and entails the payment of a large fine or forced involvement incommunity service.

Conditionally legal methods

How do these companies act, determined to deceive the state system? The scheme is extremely simple. Such methods of cashing out maternity capital involve the use of false documents and fictitious transactions.

They find owners of property that leaves much to be desired, located in remote areas. But the price tag is much higher. To pay off the difference, the buyer must also apply for a loan from an illegally operating company. Finished documents are sent to the FIU. A private company accepts the amount of maternity capital. There are many cases when such companies did not give money to citizens, but disappeared. As a result, the citizen was left without money and with debts for uninhabitable real estate.

In this case, the citizen is also not guaranteed the protection of his rights to the lost maternity capital, since he voluntarily subscribes to the offense.

Conclusion

Maternity capital is a rational and targeted assistance aimed exclusively at the interests of the family and growing children. Despite the name, the essence of the grant is that it can only be used to solve the pressing problems of the whole family.

When asking questions about workarounds or how much you can cash out from maternity capital, you must always remember that the issuance system has been worked out in detail at the state level and not a single loophole will be left withoutpunishment. From this point of view, obedience to the established order is highly desirable.

Those citizens who have already encountered offenses in this matter or have witnessed attempts to illegally obtain maternity capital should report this to law enforcement agencies.