Inside America's only royal palace whose lesbian 'last princess' left $250m fortune after she died

Iolani Palace, the only royal palace in the United States, stands in Honolulu as a stunning reminder of Hawaii's royal past.

It offers a glimpse into the grandeur of its days as the center of Hawaiian political and social life, and the darker times when its monarchy was overthrown, and its queen imprisoned.

Abigail Kawananakoa, regarded by many as Hawaii's last princess, left a $250 million fortune upon her death at age 96 in December 2022. 

She was also the great-granddaughter of a sugar baron and inherited vast wealth thanks to industrial plantations. 

Her estate will benefit Native Hawaiian causes, supporting scholarships, medical bills, funerals, and cultural preservation, the SFGate reported.

Built in the unique 'American Florentine' style, Iolani Palace blends Italian Renaissance and Hawaiian architectural elements.

It took three architects three years to complete the palace, adorned with intricate details inside and out.

The grand koa wood staircase and portraits of Hawaiian royalty, including King Kamehameha III, highlight its majestic interior.

Completed in 1882, Iolani Palace became the residence of King Kalakaua and Queen Kapiolani during a time of significant change in Hawaii.

The booming sugar industry attracted workers worldwide, but the 1890 US tariff act devalued Hawaiian sugar, leading to economic crisis.

After Kalakaua's death in 1891, his sister, Queen Liliuokalani, ascended the throne as Hawaii's first and only reigning queen.

Queen Liliuokalani proposed a new constitution to restore power to Native Hawaiians, but American and European plantation owners, backed by the US government, staged a coup in 1893, overthrowing the monarchy.

After a failed attempt to restore the monarchy in 1895, Liliuokalani was imprisoned in Iolani Palace for nearly eight months.

Iolani Palace, now a museum, attracts fewer visitors compared to other Hawaiian landmarks but remains a vital link to Hawaii's royal history.

Kawananakoa, the great-granddaughter of sugar baron James Campbell, was a significant cultural figure and philanthropist. Her wife, Veronica Gail Kawananakoa, will receive $40 million from the estate. 

More than a year after Kawananakoa's death at age 96, her $250million estate was settled in January 2024. 

Finalized court documents show that after doling out tens of millions to various people - including former housekeepers, other longtime employees and her wife - there will be at least $100 million left to support Native Hawaiian causes.     

Kawananakoa cared deeply about advancing Hawaiian culture, and resolving her estate is meaningful to Hawaiians because it is the last of what´s known as 'alii,' or royal, trusts set up by royalty to benefit Native Hawaiians.

Dr. Naleen Naupaka Andrade, executive vice president of Native Hawaiian health for The Queen´s Health System, said in January: 'Quite frankly, the needs of Hawaiians in education, in social welfare, in housing, in health far exceed the capacity of these trusts. 

'They augment what federal and state dollars should be doing for Hawaii´s Indigenous peoples.' The health system was created from a trust established by Queen Emma in 1859.

Many have been watching where the money ends up because of concerns about the fate of the foundation Kawananakoa set up to benefit Hawaiians. Kawananakoa´s trust will perpetuate Native Hawaiian culture and language, Andrade said.

According to documents in the probate case for her estate, $40 million will go to her wife. 

Settlements have also been reached with about a dozen other people who had claims, including someone described in court documents as her 'hanai' son, referring to an informal adoption in Hawaiian culture.

Legal wrangling over Kawananakoa´s trust, which now has a value of at least $250 million, began in 2017 after she suffered a stroke. 

She disputed claims that she was impaired, and married Veronica Gail Worth, her partner of 20 years, who later changed her name to Veronica Gail Kawananakoa.

In 2020, a judge ruled that Abigail Kawananakoa was, in fact, impaired and thus unable to manage her property and business affairs.

A trustee has overseen the estate.

She inherited her wealth as the great-granddaughter of James Campbell, an Irish businessman who made his fortune as a sugar plantation owner and one of Hawaii´s largest landowners. 

She held no formal title but was a living reminder of Hawaii´s monarchy and a symbol of Hawaiian national identity that endured after the kingdom was overthrown by American businessmen in 1893.

Over the years, some insisted Kawananakoa was held up as royalty only because of her wealth. 

They disputed her princess claim, saying that had the monarchy survived, a cousin would be in line to be the ruler, not her.

She put her money toward various causes, including scholarships, medical bills and funerals for Native Hawaiians. 

She also supported protests against a giant telescope because of its proposed placement on Mauna Kea, a sacred mountain in Hawaiian culture.

Donated items owned by King Kalakaua and Queen Kapi`olani for public display, including a 14-carat diamond from the king´s pinky ring; and maintained `Iolani Palace - America´s only royal residence, where the Hawaiian monarchy dwelled, and which now serves mostly as a museum.