J.H.
Hey J.,
When my older son was 2 1/2 we put a small sofa at the foot of our bed and had him move to that first. It was a great transition as he was still in our room and could see us when he went to sleep and woke up. Eventually he went to his own room and his own bed.
Sometimes even now my little one will fall asleep in my bed and when my husband comes to bed we put put him in his own bed...he's 8! But I love cuddling with him. One day he won't want to do that anymore...we have to cherish the moments! :)
One other thing I used to do when we finally put him in his own bed was lay in his bed with him until he fellasleep...that worked as well.