Line breaks in nodes when custom token is inserted

I'm using a combination of Token Filter, Token Insert, and Custom Tokens to insert tokens into various nodes throughout my site.
Now, when I use a standard built-in token, everything appears fine.
However, when I use a token that I created via Custom Tokens, there is a <P> </P> being inserted before and after the token, like this: <P>[custom:Name1]</P>.
I have verified that there is no line break when I create the custom token.
Any ideas? This happens on every single node.