Inset around where two objects intersect

Hi guys,
I had a look on google/youtube/these forums but couldn’t find exactly what I was after.
Also I’d just like to hear from you guys, what do you think is the best/fastest way to deal with this?

If I want the rounded box to sit in the larger box but with a nice chamfered inset where it intersects. I hate where polygons just intersect unrealistically. I think the boolean modifier is maybe a bad idea? I’ve played with it a bit and don’t like it much.

Maybe to select an edge loop on the rounded one, scale it up a bit and then somehow use it as a stencil on the larger box or something?

Thank you in advance for any help!

Intersect tool (Ctrl+F / Intersect) then bevel the intersect

Excellent thank you! I just tried it.

On a more complex shape it needs some serious clean up before the bevel will work but this solution might be the best one. If anyone has a faster, easier one, let me know.