In Canada, trusts are a relationship with respect to property and not a legal entity unless defined to be by statute. They offer a wide range of estate planning opportunities but must be crafted carefully to ensure they can be carried out as intended and do not result in unanticipated tax or other consequences. The Income Tax Act contains a number of punitive rules with respect to trusts to prevent the minimization or deferral of taxes using trusts. However, it also contains some favourable rules as well. Therefore, trust planning can often involve a balancing act between tax and other goals such as asset protection.