1. A. In conducting an inquiry to determine whether a person is suitable to serve as a guardian, the court shall determine if:

   1. 1. The person proposed to serve as guardian is a minor or an incapacitated or partially incapacitated person;
   2. 2. The person proposed to serve as guardian is a convicted felon;
   3. 3. The person proposed to serve as guardian is insolvent or has declared bankruptcy during five (5) years prior to the filing of the pleading proposing such person to serve as guardian;
   4. 4. The person proposed to serve as guardian or is under any financial obligation to the ward; or
   5. 5. There exists a conflict of interest which would preclude or be substantially detrimental to the ability of the person to act in the best interest of the subject of the proceeding if such person is appointed.
2. B. No minor or incapacitated person shall be appointed guardian of an incapacitated or partially incapacitated person.
3. C. If the person proposed to serve is a convicted felon, the court shall make further inquiry into the nature of the felony and the circumstances surrounding the conviction. The court shall appoint such person proposed to serve only upon determining that the facts underlying the conviction do not give rise to a reasonable belief that that person proposed to serve will be unfaithful to or neglectful of his fiduciary responsibilities, and that the appointment is in the best interest of the ward.
4. D. If the person proposed to serve as guardian or limited guardian of the property of an incapacitated or partially incapacitated person is insolvent or has declared bankruptcy within five (5) years prior to the filing of the pleading proposing that such person serve, the court shall appoint such person only after giving due consideration to the nature and extent of the property of the ward and the anticipated actions necessary to manage the estate of the ward, and only upon a determination that such appointment is in the best interest of the ward. Insolvency or bankruptcy shall have no effect on the qualification of a person proposed to serve as guardian or limited guardian of the person of an incapacitated or partially incapacitated person.
5. E. If the person proposed to serve as guardian or limited guardian of the property of an incapacitated or partially incapacitated person is under any financial obligation to the ward, the court shall make further inquiry into the nature and extent of such obligation. The court shall appoint the person proposed to serve only after a determination that such obligation will not impair the ability of the person proposed to serve to discharge his fiduciary responsibilities, and that the appointment is in the best interest of the ward. Being under financial obligation to the ward shall have no effect on the qualification of a person proposed to serve as guardian or limited guardian of the person of an incapacitated or partially incapacitated person.
6. F. A current or potential conflict of interest which is not substantial and not likely to preclude or impair the ability of a person proposed to serve as a guardian acting in the best interest of his ward shall not, by itself, disqualify such person from appointment.

Added by Laws 1988, HB 1078, c. 329, § 76, eff. December 1, 1988; Amended by Laws 1990, HB 2176 ,c. 323, § 55, emerg. eff. July 1, 1990.