How do I stop my hand from raising when I equip a tool?

Just don't use Handle, there a part in the tool called "Handle" rename it and that all.

Here is a better idea, create an Animation, export it to roblox, use its ID, ( Note : Make sure to not ENABLE Looping, unless its an IDLE animation. ), then create an Animation inside the Tool, And then make a script like this..

tool = script.Parent
if tool.Activated = true then
script.Parent.Animation:Play() --change it to the name of the animation you created.

if tool.Unequipped = true then
script.Parent.Animation:Stop()

I'm not 100% sure if it works, tell me if it gives an error. Hope this helps :)!

Tool = script.Parent
local player = game.Players.LocalPlayer
repeat wait() until player.Character ~= nil
local hum = player.Character:WaitForChild("Humanoid")

local animation = Tool.DanceAnim --Change DanceAnim to the name of your animation.
local AnimTrack = hum:LoadAnimation(animation) --Loads the animation into the humanoid.

Tool.Selected:connect(function(mouse) --If you're using a tool, change Selected to Activated, and get rid of the code on the next line. Otherwise, keep this the same.
    mouse.Button1Down(connect(function() --As mentioned above, delete this line if you're using a tool.
        AnimTrack:Play()
    end)
end)

Tool.Deselected:connect(function() --If you're using a tool, change Deselected to Unequipped. Otherwise keep it the same.
    AnimTrack:Stop()
end)

If my script doesn't works then try this to run an animation inside your tool ( Credits to Spongocardo )