Tag's depending on cousin element

Hi all!

I don't know if this title is at all descriptive, but here are my problems:

I have something that cn be like this, with no control over the form:

<lv>
<state><secret/><important/></state>
<declaration> Some text here </declaration>
</lv>

Now, I wan't the output to be something like
<lv>
<secret><important> Some text here </important></secret>
</lv>

Not all declarations are secret, nor all important.
So I can have some <state></state> or <state><important/</state> or some 
such.
My current solution (on paper) is something like:

...
<xsl:template match="lv/declaration">
 <xsl:call-template name="state"/>
</xsl:template>

<xsl:template name="state">
 <xsl:choose>
   <xsl:when test="../state/secret">
     <xsl:choose>
       <xsl:when test="../state/important">
         <secret><important><xsl:value-of select="."/></important></secret>
       </xsl:when>
       <xsl:otherwise>
         <secret><xsl:value-of select="."/></secret>
        </xsl:otherwise>
     </xsl:choose>
   </xsl:when>
   <xsl:otherwise>
     <xsl:choose>
       <xsl:when test="../state/important">
         <important><xsl:value-of select="."/></important>
       </xsl:when>
       <xsl:otherwise>
         <xsl:value-of select="."/>
       </xsl:otherwise>
     </xsl:choose>
   </xsl:otherwise>
 </xsl:choose>
</xsl:template>
...


First, I don't know if the test will function at all since they are empty 
elements.
If they don't work, how do I test for these?
If they work, how would I (in future) be able to test if the element is 
empty?
(I have Michael Kay's book 2nd edition, so if it is described in this book, 
just point me in the right direction, please).
Second, I don't like my solution at all. It is not verey generic, and for 
each new state introduced (I have no control over this), my "state" template 
doubles in size.
Is there some smarter way of doing this?
A more elaborate answer than "yes" or "no" will be appreciated :)

Thanks!

Ragulf Pickaxe :)

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