Prepare for It. The best way to prepare for this reaction is to simply know your stance ahead of time by determining if you would even consider a counteroffer. Yes, it may be more money or a better title, but there's more to consider__including your career goals, level of job satisfaction in your current role, and the opportunities that your new role offers.
Why a Resignation Letter? In these digital times, why should we submit a resignation letter, anyway? A paper trail does seem old_fashioned, but in this case, it's a best practice. It makes your intentions clear, as well as the conditions. You're removing any ambiguity about the end of your time there.