Fiqh-us-Sunnah Volume 004, Funerals and Dhikr, Fiqh 4.039.

Section : Raising of One's Hands During the Takbirs.

It is sunnah to raise one's hands while uttering the first takbir. There is nothing related from the Prophet, peace be upon him, to show that he raised his hands in funeral prayer except for the first takbir. Ash-Shawkani mentions various opinions about takbirs and the arguments for them and says: "In short nothing except the first takhir is reported from the Prophet, peace be upon him. The acts and sayings of the Companions of the Prophet (may Allah bless them) by themselves do not constitute a conclusive argument. Therefore one should raise one's hands only on saying the first lakhir. For the rest of the (three) takbirs no such instruction is available, except when one changes from one posture to another as in the regular prayer. There is no such change of posture required in the funeral prayer, so there is no need for raising hands in other than the first "takbir".