Efficiently and accurately simulating partial differential equations (PDEs) in and around arbitrarily defined geometries, especially with high levels of adaptivity, has significant implications for different application domains. A key bottleneck in the above process is the fast construction of a `good' adaptively-refined mesh. In this work, we present an efficient novel octree-based adaptive discretization approach capable of carving out arbitrarily shaped void regions from the parent domain: an essential requirement for fluid simulations around complex objects. Carving out objects produces an $\textit{incomplete}$ octree. We develop efficient top-down and bottom-up traversal methods to perform finite element computations on $\textit{incomplete}$ octrees. We validate the framework by (a) showing appropriate convergence analysis and (b) computing the drag coefficient for flow past a sphere for a wide range of Reynolds numbers ($\mathcal{O}(1-10^6)$) encompassing the drag crisis regime. Finally, we deploy the framework on a realistic geometry on a current project to evaluate COVID-19 transmission risk in classrooms.