Stumbled across this place, for the first time , in my 3rd playthrough. The place is called Forest Hut, located SW of Blackbough. No letters, no books, just a scene setting that leaves it to the player to fill in the blanks.
Inside the hut, you come across this rather grim scene:
You can't tell from the screenshot but there are flies buzzing around the 2 bodies. Mother and child lying dead on the bed, perhaps a murder-suicide? There is no gore and the bed and floor are strewn with flowers.
Outside, you see this:
So in my mind, bandits (there are 2 camps immediately north and south of the hut) robbed the household and murdered the man. The wife in despair took her own life and that of their child.
I just love this game, I am constantly coming across things I don't recall encountering in my previous 2 games.