Looking toward your financial future means considering the potential risks and opportunities. Marriage, divorce and outliving a spouse all effect what can happen to assets and, consequently, the way that you should consider handling estate planning arrangements.

As we have discussed in earlier posts in this space the new gift and estate tax exemptions provide a window of opportunity for asset transfers. Each spouse may gift $5 million before maxing out their exclusion, and the exclusion of each spouse is portable if handled correctly so that a surviving spouse may use utilize and unused portion of a predeceasing spouse's exclusion. Surviving spouses may also to give up part of an inheritance so it skips directly to a trust or other family members.

Living trusts and wills are vehicles used most often to effect asset transfers. Living trusts suspend assets and help reduce after-death costs by simplifying the probate process.

A durable power of attorney is often employed when a medical condition warrants it; however, it is possible and often a good idea to appoint someone in advance of any health decline. A power of attorney carries the financial and legal weight for another person. Appointing someone to handle proxy medical decisions is separate.

Choosing a guardian for children and designating monies for their support in the event of a parental death should be a high priority if you still have dependent children. To avoid a court's involvement, it will be helpful to properly document your wishes rather than relying on casual verbal agreements.

Source: Forbes "Estate Planning For Women (And the Men Who Love Them)" Deborah Jacobs, May 19, 2011