Of course the knee-jerk reactions here are always NO!  But I would keep trying to find a way to get to YES!  As for the question on where you would use the exclusion on a Form 1041, see this:

Treas. Reg. Sec. 1.121-1(c)(3).

(i) 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.

But why was this trust not terminated seven years ago?  Is there a provision in it, that required it to continue?  Is it still in existence, with other assets?  I think you have more of a "substance over form" case, where really the other beneficiaries just kept legal title in the trust but equitable title among themselves.