I went through and culled al the toys that were too young for the girls months ago but gradually they've found them all and brought them back into the toy room. They're very good at sharing though and are telling me what ones are good for the baby to play with.

As for their toys, because they are so close in age really if its appropriate for one its appropriate for the other, or they want to play together with it anyway. With their birthdays only days apart I try and buy similar but different gifts for each of them ITMS - so a craft thing for each but a different craft, a jigsaw each but different design etc. They know which is "theirs", but still share them. There are a very few toys that are very definitely their own personal property though - I think they have a right to their own special toys that they don't have to share.