Which statement correctly defines a fee simple absolute in possession?

• A. It must be created by deed
• B. It is land capable of being inherited
• C. It is land that cannot be inherited
• D. It requires a lease to be created

Answer: (B)

A fee simple absolute in possession is the broadest form of freehold ownership, with indefinite duration and no conditions limiting the owner’s rights. The crucial point is that this estate is capable of being inherited—that is, on the owner's death it can pass to heirs by will or by intestacy, rather than ending or being restricted to a named person.

So the defining feature is its ability to be inherited. The idea that it must be created by deed isn’t what sets the concept apart, even though transfers of freehold are typically by deed. The notion that it cannot be inherited is incorrect, since inheritance is exactly what characterizes this estate. And it being tied to a lease is also incorrect, because a fee simple is a freehold interest, not a leasehold.