(1) The court may appoint a competent person as guardian of a legally incapacitated individual. The court shall not appoint as a guardian an agency, public or private, that financially benefits from directly providing housing, medical, mental health, or social services to the legally incapacitated individual. If the court determines that the ward's property needs protection, the court shall order the guardian to furnish a bond or shall include restrictions in the letters of guardianship as necessary to protect the property.

    (2) In appointing a guardian under this section, the court shall appoint a person, if suitable and willing to serve, in the following order of priority:

    (a) A person previously appointed, qualified, and serving in good standing as guardian for the legally incapacitated individual in this state or another state.

    (b) A person the individual subject to the petition chooses to serve as guardian.

    (c) A person nominated as guardian in a durable power of attorney or other writing by the individual subject to the petition.

    (d) A person named by the individual as a patient advocate or attorney in fact in a durable power of attorney.

    (e) A person appointed by a parent or spouse of a legally incapacitated individual by will or other writing under section 5301.

    (3) If there is no person chosen, nominated, or named under subsection (2), or if none of the persons listed in subsection (2) are suitable or willing to serve, the court may appoint as a guardian an individual who is related to the individual who is the subject of the petition in the following order of preference:

    (a) The legally incapacitated individual's spouse. This subdivision is considered to include a person nominated by will or other writing signed by a deceased spouse.

    (b) An adult child of the legally incapacitated individual.

    (c) A parent of the legally incapacitated individual. This subdivision is considered to include a person nominated by will or other writing signed by a deceased parent.

    (d) A relative of the legally incapacitated individual with whom the individual has resided for more than 6 months before the filing of the petition.

    (e) A person nominated by a person who is caring for the legally incapacitated individual or paying benefits to the legally incapacitated individual.

    (4) If none of the persons as designated or listed in subsection (2) or (3) are suitable or willing to serve, the court may appoint any competent person who is suitable and willing to serve, including a professional guardian as provided in section 5106.