There is nothing in the sources of Shari `ah to the effect that one should raise his hands when making the intention for wudu’. The intention is in the heart. However, according to some scholars including Imam Ash-Shafi`i one can make an audible intention to let himself hear his intention for doing something in order to help the heart.
The only location when one makes the intention while raising his hands is when commencing the Prayer. It should be clear that in such a case raising the hands in Prayer is not for the intention. Rather, it is one of the formalities of Prayer when commencing the Prayer, bowing down for ruku`, standing after ruku` and when standing for the third rak`ah.
Having clarified the above, it becomes clear that a Muslim is not required to raise his hands when making the intention for wudu’ and one can make it in his heart. May Allah reward you and accept from you and us all our good deeds!