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): January 14, 2005

           (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                           001-15985               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

Check the appropriate box below if the Form 8-K is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:

[ ]   Written communications pursuant to Rule 425 under the Securities Act
      (17 CFR 230.425)

[ ]   Soliciting materials pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14a-12)

[ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

[ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))





Item 2.02: Results of Operations and Financial Condition

      As provided in General Instruction B.2 to Form 8-K, the information
furnished in this Item 2.02 and in Exhibit 99.1 hereto shall not be deemed
filed for purposes of Section 18 of the Securities and Exchange Act of
1934, as amended, nor shall it be deemed incorporated by reference in any
filing with the Securities and Exchange Commission, except as shall be
expressly provided by specific reference in such filing.

      On January 14, 2005, Union Bankshares, Inc. issued a press release, a
      copy of which is furnished with this Form 8-K as Exhibit 99.1,
      announcing information concerning our results of operations for our
      fourth quarter and year ended, December 31, 2004 and the declaration
      of a regular quarterly and a special cash dividend.

Item 8.01. Other Events

      On January 14, 2005 the Board of Directors of Union Bankshares, Inc.
      declared a special cash dividend of $.40 per share, as well as a
      quarterly cash dividend of $.24 per share. Both dividends are payable
      on January 28, 2005 to shareholders of record on January 24, 2005.

Item 9.01. Financial Statements and Exhibits

The following Exhibit, referred to in Item 2.02 of the Report is furnished,
not filed; herewith:

      (c)   Exhibits
            Exhibit 99.1 Union Bankshares, Inc. Press Release dated January
            14, 2005, announcing a regular quarterly and a special cash
            dividend and fourth quarter and year to date 2004 results of
            operations

                                 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.


January 19, 2005                       /s/ Kenneth D. Gibbons
                                       -----------------------------
                                       Kenneth D. Gibbons, President

January 19, 2005                       /s/ Marsha A. Mongeon
                                       ----------------------------------
                                       Marsha A. Mongeon, Chief Financial
                                       Officer


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                                EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Press Release dated January 14, 2005,
announcing a regular quarterly and a special cash dividend and fourth
quarter and year to date 2004 results of operations

EX-99

                                                               Exhibit 99.1

Union Bankshares Inc.
Main Street, P.O. Box 667, Morrisville, Vermont 05661 * 802-888-6600

                            FOR IMMEDIATE RELEASE

             Union Bankshares Announces 2004 Earnings, Quarterly
                     and Special Cash Dividend Payments

Morrisville, VT January 14, 2005 - Union Bankshares, Inc. (AMEX - UNB)
today announced net income for the quarter ended December 31, 2004 was
$1.76 million or $.39 per share compared to $1.6 million or $.35 per share
for the same period last year. Net income for the year ended December 31,
2004 was $5.84 million or $1.28 per share compared to $5.39 million or
$1.18 per share for 2003, an increase of 8.3% for the year.

A quarterly cash dividend of $.24 per share and a special cash dividend of
$.40 were declared on January 14, 2005 to shareholders of record January
24, 2005, payable January 28, 2005. A special dividend was declared as the
company's primary capital ratio on December 31, 2004 approached 12%,
earnings were better than anticipated, and the current tax treatment of
dividends is beneficial to shareholders.

Improvements in net interest and non-interest income, coupled with solid
loan growth contributed substantially to the company's increased earnings.
The company will remain well capitalized after payment of the regular and
special dividends.

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 December 31,
2004 the Company had approximately $360 million in consolidated assets and
operated 12 banking offices and 29 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.