Which type of estate does not allow the owner to take any actions that could reduce the property's value?

The correct choice is a life estate because this type of ownership grants the holder rights to the property for the duration of their life, but it comes with certain limitations. Specifically, a life tenant is prohibited from taking actions that could diminish the value of the property. This means they must maintain the property and cannot commit waste, which refers to any action that would impair or damage the estate's value. Once the life estate ends, the property reverts to the original grantor or passes to a third party, depending on the arrangements made, thus ensuring that the value is preserved during the life tenant's ownership.

In contrast, fee simple absolute grants the owner complete control over the property, allowing them to make decisions that could potentially increase or decrease its value. Fee simple conditional includes conditions that must be maintained, but it does not specifically restrict the owner from actions that could reduce value. Lastly, leasehold estate refers to a tenant's rights under a lease agreement and does not pertain to ownership rights in the same way as the other types of estate mentioned, allowing landlords more freedom to change property without the same restrictions as a life tenant.