A husband is deported, leaving his American wife with questions about tax filings

Dear Liz: I am a 56-year-old married U.S. citizen. My husband of six years was deported to the United Kingdom. Appeals to U.S. Citizenship and Immigration Services were denied. He can never return. I remain in the U.S. and will do so at least until I retire, likely at age 72. What status should I claim for federal and state taxes?

Answer: You have two options for filing taxes when you’re married: jointly and separately. Married filing jointly is often the better choice since it offers a larger standard deduction, higher phase-out limits for certain tax breaks and more favorable tax brackets, especially at higher incomes, says Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting.

Filing jointly would require including both spouses’ worldwide income, however. Filing separately would allow you to report only your own income.

Dear Liz: My 68-year-old husband has Alzheimer’s disease. I thought we were responsible, having a nice nest egg of over $2 million, a house that is paid off and no debts. However, I am now terrified that it will all be depleted because of long-term care costs. Per your advice, I consulted a fee-only financial planner to get his opinion about long-term-care insurance for myself (my husband no longer qualifies). Turns out he will be the one to get the policy for me, should I decide to go forward. I feel uncomfortable that the financial advisor has an obvious stake with this long-term-care policy and therefore might be biased with his advice.

Answer: Understandably. If the advisor would earn a commission from this policy, as your question implies, then he is not a fee-only financial planner. Fee-only planners receive payment only from their clients, not from commissions or other arrangements that could bias their advice.

Long-term-care insurance is expensive, and you’d be smart to take any policy you were considering buying to a fee-only planner committed to putting your best interests first. Most advisors don’t have to uphold this type of fiduciary standard.

You can get referrals to fee-only planners from the Garrett Planning Network, which represents advisors who charge by the hour; the XY Planning Network and the Alliance of Comprehensive Planners, which represents those who charge retainers; and the National Assn. of Personal Financial Advisors, which includes planners who charge a percentage of the assets they manage.

Also consider talking to an elder law attorney, who can advise you about possible ways to protect your assets from depletion. You can get referrals from the National Academy of Elder Law Attorneys.

Dear Liz: Please tell your audience that if they have any bank accounts, loans, credit cards or utilities, they should legally appoint someone to make decisions for them if they should become ill or injured.

The backstory: My then-40-year-old son went to the hospital with a stomachache. He fortunately told the hospital I could make healthcare decisions for him if he became incapacitated. He then suffered cardiac arrest that resulted in anoxic brain injury. After his injury, I had to deal with such things as ending his apartment lease, canceling utilities and dealing with his car loan and bank account. I had no legal authority because he did not have a will, trust or advance directive. I subsequently learned that being a conservator would enable me to do the necessary things on my son’s behalf. The entire experience was dreadful, and I wish it on no one else.

Answer: The document that could have helped you is called a financial power of attorney and every adult should have one. Financial powers of attorney designate a trusted person to pay bills, file tax returns, close accounts and make other money decisions should the creator become incapacitated. These documents can be created online for about $40, although attorneys also offer them as part of the estate planning package when creating wills or living trusts. If your son had created one, it would have saved the thousands of dollars you probably paid to get a conservatorship.

The second document every adult needs is a healthcare power of attorney, also known as a healthcare proxy, which names someone to make medical decisions in case of incapacity. Again, these are easily created online or can be drafted as part of an estate plan, and they can spare families the agony and expense of going to court to care for a loved one.

Liz Weston, Certified Financial Planner, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.