So . . . If your characters are going to lose all of their stars and sanctions, then what is the benifit of transfering between characters?
When you get a new hero you build up a 'cheap' (lo cost in spirits for the cards) hero (Dawn for Golds and any of the original ones for Purple) and then transfer to the new 'empty' hero.
The opinions expressed on this post are my own as a player, not as a Moderator.