Collections are a disaster - what am I missing?

Frequent unsharing/resharing of shared items is not a common use-case in Bitwarden.

If you want to approximate something close to what you were doing in LastPass, then I would suggest setting up one collection for each family member, plus one or more shared collections. For the member-specific collections, give the user Edit or Manage permission, and do not give permission to any other family members (other than the designated user); this should allow them to move items between their designated collection and the shared collections, and back.

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