To protect yourself, make sure you have a great property for STR. 

How do I protect myself in this situation, while also helping a relative? 

@Brice Alef-Torrisi To manage finances for multiple properties, maintain separate bank accounts for each property if held under different LLCs to avoid commingling, which could jeopardize liability protection and complicate tax deductions.If properties are under one LLC, using a single account is fine but requires detailed record-keeping for each property.

It protects the PM if they are involved in any claims.

While an LLC offers liability protection, it does not change how taxes are reported unless treated as a partnership or corporation.

This is critical for protecting yourself, your property, and your neighborhood.Here’s why:Safety Concerns:Skipping checks could allow someone with a serious criminal history—like a sex offender or violent felon—into your property.

Since they (banks) have FDIC protection and these other "trust" custodian do not I am now looking at how to protect what we have.

Anything I need to be aware of or make sure they do for my protection?

I would have advised you against an LLC, most likely, contingent on your attorney's legal protection concerns.This is assuming that by "we" you meant your spouse.

Holding properties in an LLC (or other legal entity) can offer valuable protection for your personal assets, so I understand why you went that route.