The biggest risk to me is being taken to court by her family who will inherit the deed.Is there some creative way such as setting up an irrevocable trust so that upon her death, I inherit deed to the property and her family inherits a note to what I still owe?

Again, my understanding is that to gain the same level of protection from a trust that you can from say, an LLC, you would have to use an irrevocable trust which requires you to give up a lot more control and is significantly more limiting.I have been led to believe that LTs are good for privacy and maybe some creative methods of REI but in terms of true asset protection, they are not a good option.

Land Trust does not need to be and can not be registered in California.If it is an irrevocable trust, you can even get an EIN number from IRS for it...pretty cool!

IN my mind this all boils down to what kind of assets you have … if your just have vanilla rentals and your not a slumlord what is your risk.. and insurance is far more important than how you hold title.most people have never been in litigation .. so for some reason they just think hey your sued and going to end up in court.. it is extremely rare for anyone to end up in court.. there just is not that amount of liability renting out little pink houses to renters.. but irrevocable trusts I believe offer protection and same with charitable remainder trusts.. but just having LLC no matter where its formed.. the opposing council will sue you personally that I can flat guarantee.. they wont say HEY this guy is smart he has multiple entities so we cant sue him or her..

You do not control anything about the trust if it is irrevocable. 

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.

Some open revocable, some irrevocable.

What type of trust, living revocable trust, irrevocable trust, land trust???

@Ralph Galdorisi In a Deferred Sales Trust the Seller sells to an irrevocable trust on a 30-year installment sales contract.

You are basically going to setup a revocable trust, and a irrevocable trust, plus a will.