The real issue here is not deposit insurance. I don't know that your bank is going to fail. I do know that these people are both going to die and, on the death of the latter, someone will have to figure out whether they can turn the money over to the trust or it will instead go to the decedent's estate because there was no POD beneficiary effectively named on the account.
The issue will turn on these definitions from the Florida Multiple Party Account Statute:
(b) "Beneficiary" means a person named as one to whom sums on deposit in an account are payable on request after death of all parties or for whom a party is named as trustee.
and
(h) "Pay-on-death designation" means the designation of:
1. A beneficiary in an account payable on request to one party during the party's lifetime and on the party's death to one or more beneficiaries, or to one or more parties during their lifetimes and on death of all of them to one or more beneficiaries; or
2. A beneficiary in an account in the name of one or more parties as trustee for one or more beneficiaries if the relationship is established by the terms of the account and there is no subject of the trust other than the sums on deposit in the account, whether or not payment to the beneficiary is mentioned.
The question is simple: Is a trust a "person" under the Florida statute. I looked, and I do not find the term defined in this chapter. (Someone being paid to look, your bank's attorney, might well look a little harder.) The risk for the bank is that it has opened an account using terminology supplied by the customer. It simply may not work when the time comes.
As an aside, there are two quotes here that are priceless:
They told me the attorney did not know what he was doing when he told them to open bank account in the name of the Trust and that they are doing the "correct" thing by opening joint accounts with the Trust as the beneficiary.
It was a large amount, so my Manager told me to do what they wanted.
The first speaks for itself.
As to the second, if a large amount of money is involved, well, that's when you [censored] well better make certain you know what you are doing. Routing the money to the decedent's estate will completely foil the objective of avoiding probate, delay the process, generate thousands of dollars in fees, etc.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.