Who pays taxes for a land trust with LLC as a beneficiary?

[Vidit S.]

Hi - I am getting a land trust in Florida with a LLC as a beneficiary to get a rental property in the trust. This LLC will have a WY LLC as a member for charging order protection.

I have been reading some tax laws and if I understand correctly, the grantor of the trust will be responsible to pay tax on the income derived from the assets (rental property) in the trust. If that's the case and something were to happen, I think a strong case can be made to pierce the corporate veil, because it appears that the LLC is being used merely as a shell company to shield me from personal liability. The LLC never generates any income, its only role is being listed as the beneficiary of trust that we create.

Is this correct? Or am I understanding it wrong and the Grantor is not liable for taxes?

Thanks as always for any feedback.