Potential Medicaid patient selling house $20,000 net and buying new one 3 weeks later. How do you avoid the penalty period for Medicaid?

RC, I'm not sure I understand what you're asking.

The person hasn't applied for Medicaid yet?
The person will net 20k on a home sale?
They are buying a new home? With what money?
Or are you saying that there will be 20k left after they purchase a new home?
Is there a spouse involved?

If the house being purchased has a deed titled other than the person with $20,000 net from house sale, the $20,000 put into new house can be a problem in terms of gifting if the potential Medicaid person is not on deed or gets an interest in the property as consideration for down payment. If a mortgage is done, patient will have no money, nada, nothing to pay on future house expenses once on Medicaid. Real estate purchases by persons that may go on Medicaid may be scrutinized as to reasons for purchase as long term home if they aren’t going to live there. And a lien will be filed on the property to be satisfied after death depending on your states laws.

If they need to use the money to support themselves that is okay, you don't need to keep the money. They just can't give it away, but for sure they can use it to live.

Is the person selling their house so that they can purchase a house that is ADA compliant or better suited for someone with limited mobility? As long as they KEEP the $20,000 money for their future medical and health care expenses and don't GIFT (give away) the money to someone, then they should be alright. If they give the money away; Medicaid might required that the recipient of the money to give the money back to the giver.

so selling their home and making a profit of 20k?
then buying another home?

there's only a problem with the look back period if that person GIFTS/gives money away to another person - to try and hide assets and to get medi-caid.

maybe someone else can answer better