The ruling on reciting Al-Fatihah over the Deceased

Question :

Is it permissible to recite (Surat) Al-Fatihah over the deceased and does it reach them?

Answer:

Concerning the recitation of Al-Fatihah over the deceased, I do not know of any text from the Sunnah about it. Based upon this, it should not be recited, because the fundamental principle regarding the acts of worship is forbiddance and prohibition until there is evidence established to confirm it and that it is from the Legislation of Allâh. The proof for this is that Allah rebuked whoever legislated in the religion of Allâh that which Allâh did not allow. He said:
"Or do they have partners who have legislated for them from the religion that which Allah has not allowed?"

It has been confirmed from the Prophet that he said:
"Whoever does a deed that is not in accordance with our matter, then it is rejected."

If the deed is rejected, then it is false and futile. Allâh is far removed from being drawn near to by such a deed.

In reference to hiring a reciter to recite the Qur'an so that its blessing will be for the deceased, this is forbidden. It is not correct to take payment for the recitation of the Qur'an and whoever takes payment for the recitation of the Qur'an, then he is a sinner. He gets no reward, because the recitation of the Qur'an is an act of worship and it is not permissible for the act of worship to be a means to attain anything of the worldly benefits. Allâh said:

"Whoever desires the life of this world and its glitter, We will pay them in full (the wages of) their deeds therein (in this life) and they will not have any diminution (i.c., they will not be shortchanged) therein."

Source:
Ash-Shaykh Ibn 'Uthaimin
Fatawa Islamiyah, Vol. 3 Pages 117-118