First understand that a trust of any kind is a legal arrangement where one person (trustee) holds property for another person's benefit (beneficiary). The original owner never gives up control of the assets, but the trustee becomes the owner for public appearances and legal purposes -- to sell, to enter into contracts to sell, to mortgage and subdivide land. The beneficiary has the right to possess the property, the income generated and the proceeds from a sale of the property.
All trusts provide anonymity to the owner and protects the original owner from certain legal proceedings and tax/credit obligations. When a trust has been established it survives eternally. The original owner can name additional beneficiaries. Since the beneficiary has already been named and the trust never dies, there is no need for probate.
When a land trust is established, the identity of the trustor(s) is protected. The identity of the original owner can only be revealed by court order. Being anonymous means that the trustor can avoid law suits which include those from creditors. Taxes are paid by trusts. But the original owner does not pay taxes on the assets held within a trust.
A great example of how land trusts are used involved the created of Disney World in Florida. Since Walt Disney had already built Disney Land in California and was, at the time, one of the wealthiest men in the country, he could not go to Florida and purchase the 27,000 acres at fair market value ($180 per acre at the time). So in order for him to acquire the property at fair prices, he established several land trusts. The sellers only dealt with the trustee of each land trust and sold for fair prices.