Ask Mrs. Riches: Choosing Heirs

My husband and I, a couple in our 50s, are in the midst of reviewing our estate planning and are trying to decide on heirs. While we have no children of our own, we do have many nephews and nieces, one of whom we are much closer to than the others. She's the youngest of my brother's four children and we quite frankly dote on her. Our inclination is to leave the bulk of our estate to her, including a house we wish to stay in the family. She loves the house and so we feel sure she will cherish it as we have. But at the same time, we are not heartless people and certainly don't want to cause our other nephews and nieces any hurt feelings and stir up discord in the family. In the interest of fairness, do we divide the estate equally among them? What do we do about the house? Your help is appreciated.