A parallel flow filter-in-filter design for a filter system is provided. The filter-in-filter design provides two distinctly parallel or independent flow paths within a filter assembly in a single housing or shell. The filter assembly includes a first outer filter element radially spaced apart from a second inner filter element. A centertube and a funnel shaped passageway housed within the centertube are provided in a space between the first outer filter element and the second inner filter element. The centertube and funnel shaped passageway work in tandem to provide two distinct parallel or independent flow paths within the filter assembly. The funnel shaped passageway is provided generally below the second inner filter element within the centertube.