Estate planning--with your IRA.

Looking to open an Individual Retirement Account (IRA) before the April 18 tax-filing deadline? This could be a great chance to save for retirement. But it's also an opportunity to think about your estate plan.

Many Americans don't have a will. Even if you've taken that crucial step, however, that doesn't mean your estate is entirely in order. A will governs those assets that are subject to the legal review known as probate--but many assets pass outside of the probate process. For instance, if a couple owns a house jointly with right of survivorship, the house will typically pass directly to the surviving spouse. Similarly, trust assets will pass to the beneficiaries named in the trust and life-insurance proceeds will go directly to the policy's beneficiaries.

An IRA can work the same way. The account's assets will usually pass directly to the named beneficiaries. Does your IRA still have your ex-husband listed as the beneficiary? He will likely get the money, even if your will states that everything should go to, say, your children or your new husband.

If a couple has more than enough assets for their own retirement, they might not leave their IRAs to each other, but instead name their children or grandchildren as beneficiaries. Once the children or grandchildren inherit the IRA, they can gradually draw down the account over their lifetime, potentially squeezing years of additional tax-deferred growth out of the IRA. As a precaution, the beneficiaries should consult a tax advisor, so they don't run afoul of the tax rules involved.

INVESTMENT AND INSURANCE PRODUCTS: NOT FDIC INSURED • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NO BANK GUARANTEE • MAY LOSE VALUE

This is intended for informational purposes only. It is not an offer to buy or sell any of the securities, insurance products, investments, or other products named.

Citigroup Inc. and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

A change to your current policy may incur charges, fees and costs. A new policy will require a medical exam.

© 2011 Citigroup Inc. Citi Personal Wealth Management is a business of Citigroup Inc., which offers investment products through Citigroup Global Markets Inc. ("CGMI"), member SIPC. Insurance products offered through Citigroup Life Agency LLC ("CLA"). In California, CLA does business as Citigroup Life Insurance Agency, LLC (license number 0G56746). Citibank, N.A., CGMI and CLA are affiliated companies under the common control of Citigroup Inc. Citi and Citi with Arc Design are registered service marks of Citigroup Inc. or its affiliates.