You wrote: "I know I need to file a 1041 Estate Income Tax Return form the date of death until 12/31/09."
In most cases the estate is not required to use a calendar year so can file a full year return for the year beginning on the date of death rather than a short year return ending 12/31.
You can choose a calendar year; but it is not required.
The estate's first tax year may be any period of 12 months or less that ends on the last day of a month. Once chosen, the same tax year must be used unless a change of accounting method is chosen and approval is gained.
See http://www.irs.gov/pub/irs-pdf/i1041.pdf page 8 Accounting Periods.
It is technically correct that a beneficiary who receives no distribution or an allocation of an item of the estate does not need to receive a K-1. It may still be desirable to provide the Schedule K-1 to beneficiaries that will not have any distribution or an allocation of an item of the estate to demonstrate and document what was done.
Generally the Schedule K-1 is prepared as part of the 1041 tax return regardless of distributions or an allocation of an item of the estate to the beneficiary or not.
So, you may want to consider only filing one fiscal year Form 1041 if the distributions will occur less than one year after the date of death that would distribute the income and expenses to the beneficiaries.
A final K-1 is almost always required to be given to beneficaries because of distributions and allocated items. It is any distribution, whether income or corpus, that triggers the requirement.
You also may want to confer with counsel in regard to whether having the trust pay taxes that may be able to passed through to beneficiaries (generally at a lower tax rate) and using a non-interest bearing account (rather than investing and earning) fulfills the fiduciary duties of the executor or administrator of the estate.
I hope this helps for the general rules for accouting periods and issuing Schedule K-1.
Please ask if clarification is needed.