I have heard that some parents simply pass the toys down through the generations. Maybe they will sell them or give to charity.
We do not give away old toys nor throw them away. They are supposed to be part of our life, the childhood days were not complete without those toys. What if one of your children becomes a celebrity or a hero? Those old toys would serve as a historical relic. I'm not joking, it is better to store old toys than to do away with them for you don't know what's going to happen in the future.
Don't have kids yet, but as a lifelong toy lover I would probably just keep them until my kids made up their mind as to whether or not they want them in the future. I would nevertheless put an ultimatum on 'em - either make a decision by so-and-so date, or they get donated. (Not much point throwing out perfectly good toys.)
We are keeping all the Thomas the Tank Engine toys, my husband has kept all the packaging and we are storing the train table and toys for our grandkids. The Thomas trains and track are so well made, and we spent a fortune on these toys, we just couldn't bear to part with them. Most of the other toys we have given away or sold at garage sales but the ones that have sentimental value we keep. My mother kept all my brother's Hotwheels and GI Joe toys which my kids play with when we go visit. They are ing great shape and the kids love them.
Most kid stuff, whether it's toys or clothes or whatever, gets handed down. After it went through my four kids, if there was still anything good, it went on to family or friends or to charity. We all often swapped things as well, depending on our kids' ages, sizes, and needs at the time. I donated a lot of toys, but if my kids had anything special or a collection, I let them decide what to do with that stuff. Just don't move out and leave it at my house....
Well, our family has sprouted many children over he recent years, both girl children and boy children. though this generation was mostly girls. So it works as far as giving hand me downs down. If there is nobody to give the toys to, or sell them to, then we have always just taken them to the nearest charity shop.
I think it's always difficult to predict which of the toys will be worth money in the future and which won't, so it is hard to know which to keep and which to let go of. Personally, I will try to sell as much as possible, and will then give whatever I can't sell to a charity shop, as I do like to help people in need when I am able to. I always try and make a little bit of money out of it first, though, as I am trying to save at the moment, so this is important to me.