Liliʻuokalani was arrested on January 16, 1895, several days after the failed 1895 Counter-Revolution in Hawaii led by Robert William Wilcox, when firearms were found at the base of Diamond Head Crater. She denied any knowledge at her trial, defended by former attorney general Paul Neumann. She was sentenced to five years of hard labor in prison by a military tribunal and fined $5,000, but the sentence was commuted to imprisonment in an upstairs bedroom of ʻIolani Palace, where she composed songs including The Queen’s Prayer (Ke Aloha o Ka Haku) and began work on her memoirs.
During her imprisonment, she abdicated her throne in return for the release (and commutation of the death sentences) of her jailed supporters, including Minister Joseph Nawahi, Prince Kawananakoa, Robert Wilcox, and Prince Jonah Kuhio.
The Queen with her stepson and friends.
Before ascending the throne, for fourteen years, or since the date of my proclamation as heir apparent, my official title had been simply Liliuokalani. Thus I was proclaimed both Princess Royal and Queen. Thus it is recorded in the archives of the government to this day. The Provisional Government nor any other had enacted any change in my name. All my official acts, as well as my private letters, were issued over the signature of Liliuokalani. But when my jailers required me to sign (“Liliuokalani Dominis,”) I did as they commanded. Their motive in this as in other actions was plainly to humiliate me before my people and before the world. I saw in a moment, what they did not, that, even were I not complying under the most severe and exacting duress, by this demand they had overreached themselves. There is not, and never was, within the range of my knowledge, any such a person as Liliuokalani Dominis.
—Queen Liliuokalani, “Hawaii’s Story By Hawaii’s Queen”
Following her release, she was placed under house arrest for a year and in 1896, the Republic of Hawaiʻi gave her a full pardon and restored her civil rights.
She then made several trips to the United States to protest against the annexation by the United States and attended the inauguration of US President McKinley with a Republic of Hawaiʻi passport personally issued to “Liliʻuokalani of Hawaiʻi” by President Dole.
In 1898, Hawaiʻi became an incorporated territory of the United States during the Spanish American War and took control of the 1,200,000 acres (4,900 km2) of land that formerly was held in trust by the monarchy and known as “Crown Land”. This later would become the source of the “Ceded Lands” issue in Hawaiʻi.
In 1900, the US Congress passed the Hawaiʻi Organic Act establishing a government for the Territory of Hawaii.
From 1905 to 1907, the Queen entered claims against the U.S. totaling $450,000 for property and other losses, claiming personal ownership of the crown lands, but was unsuccessful. The territorial legislature of Hawaii finally voted her an annual pension of $4,000 and permitted her to receive the income from a sugar plantation of 6,000 acres (24 km²), which was the private property of her late brother before his election as king.
In 1910, Liliʻuokalani brought an unsuccessful lawsuit against the United States seeking compensation under the Fifth Amendment for the loss of the Hawaiian crown land.
The Queen was also remembered for her support of Buddhist and Shinto priests in Hawaiʻi and became one of the first Native Hawaiians to attend a Vesak Day (Buddha’s Birthday) celebration of May 19, 1901 at the Honwangji mission. Her attendance in the celebration had helped Buddhism and Shintoism gain acceptance into Hawaiʻi’s society and prevented the possible banning of those two religions by the Territorial government. Her presence was also widely reported in Chinese and Japanese newspapers throughout the world and earned her the respect of many Japanese people both in Hawaiʻi and in Japan itself.
She lived in Washington Place until her death in 1917 due to complications from a stroke. She was 79. She received a magnificent state funeral due to her status as a former head of state.
Upon her death, Liliʻuokalani dictated in her will that all of her possessions and properties be sold and the money raised would go to the Queen Liliʻuokalani Children’s Trust to help orphaned and indigent children. The Queen Liliʻuokalani Trust Fund still exists today.