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Originally Posted by retiredguy123
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Still just one account. Different account category (the beneficiary triggers the Revocable Trust) but still one account. With just one beneficiary it would still be insured for $250,000.
What this does change: Normally, two accounts at the same bank held by the same person would be insured to a combined $250,000 (NOT $250,000 each). By adding a beneficiary to ONE of the accounts moves that account into the Revocable Trust category. Therefore, the account holder would be insured for $250,000 on the savings account plus $250,000 on the revocable trust. A total of $500,000 but only $250,000 maximum on each of the two different account categories.
(See difference between joint account and beneficiary. See also table above example 4 and text of example 5)
And most importantly, talk to a licensed professional for guaranteed accurate financial advice.