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The basic principle is to raise the hands when offering supplication (du‘aa’) except in some cases where it is not prescribed to raise the hands. This has been discussed previously in the answer to question no. 11543
Shaykh Ibn Baaz (may Allah have mercy on him) said: If he offers supplication and raises his hands, this is one of the means of having the supplication answered, except in some cases where the Prophet (blessings and peace of Allah be upon him) did not raise his hands, so we should not do that either, such as during the khutbah on Friday, when the Prophet (blessings and peace of Allah be upon him) did not raise his hands unless he was praying for rain (istisqa’), in which case he did raise his hands. The same applies between the two prostrations and before saying the salaam at the end of the tahajjud; the Prophet (blessings and peace of Allah be upon him) did not raise his hands, so we should not raise our hands in these cases where he (blessings and peace of Allah be upon him) did not raise his hands, because his doing something is proof and his not doing something is proof. Similarly, after saying the salaam at the end of the five daily prayers, the Prophet (blessings and peace of Allah be upon him) used to recite adhkaar as prescribed in Islam, without raising his hands, so we should not raise our hands either in that case, following his example. As for the cases in which he (blessings and peace of Allah be upon him) did raise his hands, the Sunnah in those cases is to raise the hands, following his example and because that is one of the means of having supplications answered. The same applies to cases in which the Muslim may offer supplication to his Lord and there is no report from the Prophet (blessings and peace of Allah be upon him) to indicate whether he raised his hands or not. In such cases we may raise our hands, because of the hadeeths which indicate that raising the hands is one of the means of having the supplication answered, as stated above.
End quote from Majmoo‘ al-Fataawa, 26/146
An-Nawawi (may Allah have mercy on him) said: Chapter: it is mustahabb to raise the hands when offering supplication outside of prayer. Then he (may Allah have mercy on him) quoted a number of hadeeths which indicate that it is permissible to raise the hands when offering supplication outside of prayer… Then he said: There are many hadeeths concerning this issue other than those I have quoted, but those that I have quoted are sufficient. The point is that it should be understood that the one who claims that raising the hands should be limited to the cases mentioned in the hadeeth is mistaken.
End quote from Sharh at-Tahdheeb, 3/489
Shaykh Ibn Baaz (may Allah have mercy on him) was asked: Should supplication be offered at the grave by raising one’s hands?
He replied: If one raises the hands there is nothing wrong with it, because of the report proven from the Prophet (blessings and peace of Allah be upon him) in the hadeeth of ‘Aa’ishah (may Allah be pleased with her), according to which he (blessings and peace of Allah be upon him) visited the graves, raised his hands and offered supplication for their occupants. Narrated by Muslim.
End quote from Majmoo‘ al-Fataawa, 13/337
Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) said:
with regard to offering supplication for him after the burial, it is proven in a report narrated by Abu Dawood that the Prophet (blessings and peace of Allah be upon him) would, after burying the deceased, stand over him and say: “Pray for forgiveness for your brother and ask for him to be made steadfast, for now he is being questioned.” If someone raises his hands when asking for forgiveness for him, there is nothing wrong with that, and if someone does not raise his hands and says “O Allah, forgive him; O Allah, forgive him; O Allah, forgive him; O Allah make him steadfast; O Allah, make him steadfast; O Allah, make him steadfast,” then leaves, (that is also acceptable).
End quote from Liqa’ al-Baab al-Maftooh. No. 82
Shaykh ‘Abd al-Muhsin al-‘Abbaad (may Allah preserve him) was asked about the ruling on raising the hands when offering supplication for the deceased after burying him.
He replied: The matter is broad in scope. We do not know of anything to indicate that it is proven or that it is not allowed. So the individual may raise his hands or not. The issue of raising the hands or not may be as follows:
1.Where there is a text which speaks of raising the hands, such as offering supplication (du‘aa’) in ‘Arafah, offering supplication at the first and second Jamarah, and praying for rain (istisqa’)
2.Where there is no mention of raising the hands, such as the supplication in the Friday sermon (khutbah), when no one is to raise his hands in supplication, neither the khateeb nor the members of the congregation, because the Messenger (blessings and peace of Allah be upon him) did not raise his hands although he delivered so many khutbahs to the people.
3.In other cases, the matter is broad in scope; one may raise the hands or not.
End quote from Sharh Sunan Abi Dawood
And Allah knows best.