My limited understanding of a land trust is that it has three parties. The Settlor, the Trustee and the Beneficiary. Since I would be the Settlor (the person having the trust created) and the Beneficiary (The one who receives all of the benefits of the trusts, my question is; what risk does this put the Trustee at? Is this person Trustee) totally relieved of any liability or lawsuits?
The trustee is completely responsible. You, as the beneficiary, are responsible if you are also the trustee or have significant control over the trustee. You are also responsible if your state does not allow self-settled trusts (aka asset protection trusts). Some states view them as against public policy and ignore them.