What you need:
- Two backgrounds (the same backgrounds)
- One or more characters
What you have to do:
Choose the background that you want from the Art Catalog, save it then make it an overlay. Select a name. Wait him to be reviewed then put in your script.
INT. BACKGROUND - DAY with BACKGROUND OVERLAY at layer 1
@CHAR1 stands screen center AND CHAR1 faces right
@CHAR1 moves to layer 2
@pause for a beat
@overlay BACKGROUND OVERLAY moves to layer 2
@overlay BACKGROUND OVERLAY opacity 0.5 in 0
EXAMPLE
You can do this for more characters.
IMPORTANT!!
Always move the character/s with a layer (or more) smaller than the overlay.
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Hello! It’s a good and a very valuable thread, but in my opinion your way of doing this is a bit too tangled. 
It can be also done this way:
INT. BGR - DAY with BGR OVERLAY in zone 1 at layer 2
&overlay BGR OVERLAY opacity 0
&CHAR1 spot 1.28 160 0 in zone 1 at layer 1 AND CHAR1 faces right AND CHAR1 is idle
#now we don’t see overlay and the character is displayed like we don’t have the overlay at all
@pause for a beat
@overlay BGR OVERLAY opacity 0.5 in 1
#character slowly becomes translucent
@overlay BGR OVERLAY opacity 1 in 1
#character slowly disappears
The main idea is that you don’t need to change overlay’s and character’s layers, but specify them at once, fading effect is achieved by changing the overlay opacity only.
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