Transfer On Death Form

My father died in June 3rd, 2009. His Merrill Lynch account individual investor is always open and there was a TOD (transfer on death) form listing my brother and me as co-beneficiaries.
It is open due to settlement problems of succession.
I had the 1099 of Mr. Lynch and the dividends are paid quarterly. The trainer said he could not calculate and estimate the dividend tax return belonged to my father for the period before June 3rd and dividends that my brother and I would like to report on our tax returns.
Then, suddenly, the preparer said they were more comfortable with the 1040 for my father before June 3rd and then filing a 1041 just for the dividends received between June 4 and December 31.
So, if the division of dividends for 2009 could be calculated-estimated to the satisfaction of the IRS, but using the 1041 is "more comfortable" for the preparer, it sounds like there are two ways to do this and the two are ok with the IRS. A brother does not believe that cats have hair (if the other brother says that is true with proof) so brother insists that the tax preparer to file a 1040 for my father in 2009 and a 1041 for the estate for small dividends paid after June 3rd and then another 1,041 in 2010. My question this decision is based on the fact that SDT remittances on account of beneficiaries on the date of death, so why are the 1041's requireda The brothers are co-beneficiaries and they will pay any taxes due on dividends if the Form 1041 or not.
So it boils down to tax preparation under way for a single 1040 or 1040 and a 1041 for 2009 and 1041 for 2010 since this account will be closed ML some time between April 1 and July 31, 2010 .
What is wrong with the calculation of dividends, in 3 parts (my father, me and my brother) based on the date of death June 3a

Here's the problem. The title has not yet transferred to you.

IRS Publication 559:

How to Report
Revenue in respect of a deceased person must be included in the income of one of the following:

(1) the deceased's estate if the estate to it;

(2) The beneficiary, if the right to income is passed directly to the beneficiary and that he receives, or

(3) Any person who distributes the estate a right to receive it.

The income in question fell into category 1, category 2, not as the account has not yet been transferred. If the account had been transferred from the 1099-DIV would have been in your name and SSN.

Did the estate to distribute money or assets during the yeara It should not be in this account. If the amount distributed exceeds the income (less expenses), the 1041 K-1 pass income and tax liability through you anyway. If no money was distributed, then the estate pays the tax on income.

yes