Pulled from Realized Marketplace post "Can an Estate Use a Section 121 Exclusion?"

From Section 121 Exclusion called 1.121-1(c)(3)(l):

Trusts. If a residence is owned by a trust, for the period that a taxpayer is treated under sections 671 through 679 (relating to the treatment of grantors and others as substantial owners) as the owner of the trust or the portion of the trust that includes the residence, the taxpayer will be treated as owning the residence for purposes of satisfying the 2-year ownership requirement of section 121, and the sale or exchange by the trust will be treated as if made by the taxpayer.

From this, I interpret that the estate can qualify since the beneficiaries(the family) qualify for 121 exclusion.  Thoughts?  This is a community property state too.