Tax Libaility if estate is divided other than stated in the will

The situation: there are 4 nephews as heirs in an estate consisting of a $200,000 house and $300,000 in cash. We are all in agreement that 1 nephew can take the house without buying out the interest of the other 3. The other 3 nephews will each get $100,000 in cash.

The question: does the person who takes the house have to pay state tax on $200,000 or the 1/4 share he should have had?

we are in nj

It sounds as if 3 nephews are making a gift to the 4th of $25,000 each. It seems fair that IF there is any state inheritance or estate tax, the one getting the extra $75,000 in value should pay the tax on that extra value.