Capture spirits of family in the shire (7)
I believe the answer is:
baggins
'family in the shire' is the definition.
(family from the Shire in The Lord of the Rings)
'capture spirits' is the wordplay.
I cannot really see how this works, but
'capture' could be 'bag' (both can mean to secure or acquire) and 'bag' is located in the answer.
'spirits' could be 'gin' (gin is a kind of spirits) and 'gin' is present in the answer.
A single letter 's' remains which might be clued in a way I don't understand.
This explanation may well be incorrect...
'of' acts as a link.
(Other definitions for baggins that I've seen before include "family of hobbits" , "Shire dweller" , "Hobbit" .)