let's assume that your clients are aging-that's pretty safe, right? Longevity, though, has its downsides, and an important one for estate planners is that among individuals over age 85, about half have some form of cognitive impairment. This is extremely important to your clients, their families and you.

The quick estate planning answer is to confirm that all your aging clients have signed a durable power of attorney, which authorizes a designated person-an agent-to make legal, tax and financial decisions on their behalf. In addition, living wills set forth clients' wishes concerning end-of-life decisions, and health proxies designate an agent to make healthcare decisions and carry out the wishes set forth in the living will.

But these papers, while vital, aren't enough to protect a client completely. Many additional steps are within the purview of the financial planner. An attorney will likely draft the relevant documents, but you can focus clients on their value and get the process moving.

FINANCIAL SAFEGUARDS

Incidences of elder abuse by agents under powers of attorney are too common to ignore. Even so, powers remain one of the most important tools to assist infirm clients in handling their affairs. How do you ensure that your client's power of attorney isn't misused? Advisors can recommend a number of steps. With some modification, many of these measures will also apply to living trusts:

* Simplify and consolidate accounts. Clients often have multiple bank and investment accounts that are not disclosed to their primary advisors. Consolidating them will help the client keep tabs on investments, and the advisor track agents' activities.

* Request duplicate monthly statements. Suggest that clients have an independent person, say the client's CPA, receive a duplicate copy of each investment statement. So long as this person is independent of the agent under the financial power, the statements can provide a robust check and balance.

* Don't be satisfied with boilerplate legal language. Too many clients sign powers of attorney thinking, "this is a common standard form." The nuances of language in provisions governing details, such as the agent's authority to make gifts, or change insurance and retirement plan beneficiaries, can give an agent virtual blanket authority to alter the client's entire estate. CPAs and financial planners generally surrender their responsibility to the client's attorney.

The reality, though, is that most clients won't invest the time with their attorneys to review the boilerplate and discuss their options and best choices. Having a planner involved in the process and thinking through the implications of the provisions with the client can make the difference. Boilerplate is essential-you need a starting point for discussion and analysis. But that's all it should be.

* Consider modifications tailored to address the client's personal wishes. These may include a provision of round-the-clock private nursing care, plus other staff, to avoid institutionalization; provision of companion care in addition to private care nursing staff; paying for experimental and other unproven medical procedures regardless of cost (the living will might also authorize these treatments); plus other personal wishes.

* Think of home. If the client's wish is to remain in her home, the typical language in a power of attorney-which permits the agent to sell real estate-should be revised to reflect that the sale of a primary residence should be prohibited unless the client has deteriorated to the point that institutionalization is necessary (if the client accepts that result).

* Appoint a monitor. New York State recently amended its power of attorney statute to provide for a position called a monitor, who reviews the agent's activities and can challenge them in court. A monitor is a check-and- balance mechanism embedded in the power of attorney document. While the statute has been criticized for its complexity, the concept of a monitor can be a powerful protection, and you can appoint one in any state.

A person (and successors to that person) can be formally named as monitor, and given specific rights and authority to receive monthly statements, copies of contracts signed, etc. If the monitor suspects the agent of inappropriate conduct, he can challenge the agent's actions and, if necessary, request a court to replace the agent with the named successor.

PERSONAL SAFEGUARDS

Creating personal safeguards in an estate plan, apart from appointing an agent under a health proxy, is far less common than incorporating financial checks and balances. But addressing these issues is imperative when dealing with aging clients. While most of your clients may not need these protections, some will.