Which statement accurately describes a fee simple subject to an executory interest?

• A. A fee simple that automatically transfers to a third party upon the occurrence of a specified event.
• B. A fee simple that automatically reverts to the grantor on the occurrence of a condition.
• C. A life estate followed by a remainder to the grantor's heirs.
• D. A fee tail estate.

Answer: (A)

A fee simple subject to an executory interest is a grant of a fee simple that is tied to a condition which, when it occurs, automatically divests the current owner and transfers the property to a third party. The key idea is the automatic shift of ownership to someone other than the grantor, not a reversion back to the grantor. A classic example is “To A, but if X happens, then to B.” Here, A holds a fee simple, but upon X, B takes automatically. That automatic transfer to a third party is exactly what an executory interest does.

This differs from describing a transfer that reverts to the grantor upon a condition, which describes a different mechanism (typically a fee simple subject to a condition subsequent or a determinable with a possibility of reverter). It also isn’t a life estate with a remainder to the grantor’s heirs, which would be a different form of future interest entirely. And a fee tail is an older, distinct estate type with its own history and rules.