should still apply ....

I'm not sure that statement is correct, for an irrevocable trust.  Was this for medicaid reasons?

Doesnt the 1041 have a Home Sale Worksheet like the 1040? 

If you use the Where Do I Enter button and type Home Sale it will take you to it.

Yes, it was originally done for medicaid reasons.  After the husband died, the wife decided to move in with her daughter and the trust sold the house.

Your clients may need to chat with a attorney:

Sale of Principal Residence by Irrevocable Trust: Top Strategies » (estatecpa.com)

Or maybe @BobKamman will stop by.

If the trust was an IDGT "intentionally defective grantor trust" then the estate attorney should be thanked as the home sale gain exclusion still applies.

@dascpa  

Let's hope so.

I guess...

"and is the grantor in the trust."

In my experience, it matters who is the beneficiary, not grantor, for irrevocable trust.