8-K

                     SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C. 20549

                                  FORM 8-K

                               CURRENT REPORT

      Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 16, 2003

           (Exact name of registrant as specified in its charter)

                           UNION BANKSHARES, INC.

(State or other jurisdiction      (Commission            (IRS Employer
      of incorporation)           File Number)       Identification Number)
          Vermont                  000-28449              03-0283552

(Address of principal executive offices)
       20 Main St., P.O. Box 667                          (Zip Code)
           Morrisville, VT                                05661-0667

Registrant's telephone number, including area code:  (802) 888-6600

        (Former name or former address, if changed since last report)

                               Not applicable

Item 7.     Financial Statements and Exhibits.
      (c)   Exhibits
            Exhibit 99   Union Bankshares, Inc. Press Release dated July 16,
            2003, announcing a three-for-two stock split, quarterly cash
            dividend and second quarter earnings

Item 9:     Regulation FD Disclosure

On July 16, 2003, the Board of Directors of Union Bankshares, Inc. declared
a three-for-two stock split in the form of a 50% stock dividend and a
quarterly cash dividend on pre-split shares of $.30 per common share.  The
cash dividend is payable on July 30, 2004 to shareholders of record as of
July 26, 2003.  The new shares resulting from the stock split will be
issued on August 8, 2003 to shareholders of record on July 26, 2003.
Fractional stock split shares are to be settled in cash.  The Company's
Press Release announcing the stock split, cash dividend and second quarter
earnings and containing additional information regarding such matters, is
furnished as Exhibit 99 to this report.

      SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.

                                       Union Bankshares, Inc.

July 16, 2003                          /s/  Kenneth D. Gibbons
                                       ______________________________
                                       Kenneth D. Gibbons, President

July 16, 2003                          /s/  Marsha A. Mongeon
                                       ______________________________
                                       Marsha A. Mongeon, Chief Financial
                                        Officer

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                                EXHIBIT INDEX

       Exhibit 99   Union Bankshares, Inc. Press Release dated July 16,
                    2003, announcing a three-for-two stock split, quarterly
                    cash dividend and second quarter earnings

EX-99.1 CHARTER

                                                                Exhibit 99

                                PRESS RELEASE

July 16, 2003

            UNION BANKSHARES ANNOUNCES THREE-FOR-TWO STOCK SPLIT,
                    QUARTERLY CASH DIVIDEND AND EARNINGS

(Morrisville, Vermont) - The Board of Directors of Union Bankshares, Inc.
(AMEX: UNB) today declared a three-for-two stock split, in the form of a
50% stock dividend, and a quarterly cash dividend on the Company's common
shares.

On August 8, 2003 Union shareholders will receive one additional share of
common stock for every two shares they hold of record on July 26, 2003.
Shareholders entitled to receive fractional shares will receive a cash
payment in lieu of the fractional share, based on the stock's closing price
on July 25, 2003, the last trading day preceding the record date, adjusted
pro rata to reflect the effect of the stock split.

In addition, a regular quarterly cash dividend of $0.30 per pre-split share
(equivalent to $.20 per post-split share) will be paid on July 30, 2003 to
shareholders of record on July 26, 2003.

The Company also announced net income for the quarter ended June 30, 2003
of $1.189 million, or $.39 per pre-split share, compared to $1.083
million, or $.35 per share, for the same period last year.  During the
quarter the Company completed the previously announced merger of its two
Vermont bank subsidiaries, under the name and charter of Union Bank.

Commenting on the stock split, President and CEO Ken Gibbons stated that
"the Board believes the lower per share price and increased number of
shares outstanding should help to make the stock accessible to a broader
base of investors and should improve the stock's liquidity."  "We are
pleased with our stock's strong performance, especially in light of the
prevailing economic climate," he continued.

Upon completion of the split, the number of common shares issued and
outstanding will be approximately 4,545,800.  Certificates for the
additional shares and any fractional share settlement will be mailed on or
about August 8, 2003 by the Company's transfer agent, its wholly owned
subsidiary, Union Bank.

Union, with headquarters in Morrisville, Vermont is the bank holding
company parent of Union Bank, which offers deposit, loan, trust and
commercial banking services throughout northern Vermont.  As of June 30,
2003 the Company had approximately $335.9 million in consolidated assets
and operated 12 banking offices and 28 ATM facilities in Vermont and a loan
origination office in the adjacent Littleton, New Hampshire market.

                              * * * * * * * *

Statements made in this press release that are not historical facts are
forward-looking statements.  Investors are cautioned that all forward-
looking statements necessarily involve risks and uncertainties, and many
factors could cause actual results and events to differ materially from
those contemplated in the forward-looking statements.  When we use any of
the words "believes," "expects," "anticipates" or similar expressions, we
are making forward-looking statements.  The following factors, among
others, could cause actual results and events to differ from those
contemplated in the forward-looking statements: uncertainties associated
with general economic conditions; changes in the interest rate environment;
inflation; political, legislative or regulatory developments; acts of war
or terrorism; the markets' acceptance of and demand for the Company's
products and services; technological changes, including the impact of the
internet on the Company's business and on the financial services market
place generally; the impact of competitive products and pricing; and
dependence on third party suppliers.  For further information, please refer
to the Company's reports filed with the Securities and Exchange Commission
at www.sec.gov.