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 15, 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:

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

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

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

      o     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 July 15, 2005, Union Bankshares, Inc. issued a press release, a
      copy of which is furnished with this Form 8-K as Exhibit 99.1,
      announcing net income and net income per share for our second quarter
      ended, June 30, 2005 and the declaration of a regular quarterly cash
      dividend.

Item 8.01.  Other Events

      On July 15, 2005 the Board of Directors of Union Bankshares, Inc.
declared a quarterly cash dividend of $.24 per share.  The dividend is
payable on July 28, 2005 to shareholders of record on July 25, 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 July
            15, 2005, announcing a regular quarterly dividend and second
            quarter 2005 net income and net income per share

                                 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 15, 2005                          /s/ Kenneth D. Gibbons
                                       ______________________________
                                      Kenneth D. Gibbons, President

July 15, 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 July 15, 2005,
announcing a regular quarterly cash dividend and second quarter 2005 net
income and net income per share

EX-99

                                                               EXHIBIT 99.1

                            FOR IMMEDIATE RELEASE

             Union Bankshares Announces Second Quarter Earnings
                       and Quarterly Dividend Payment

Morrisville, VT July 15, 2005 - Union Bankshares, Inc. (AMEX - UNB) today
announced net income for the quarter ended June 30, 2005 was $1.433 million
or $.31 per share compared to $1.305 million or $.29 per share for the same
period in 2004, an increase of 9.8% over the same period in 2004.  Total
loans have grown $26.1 million or 9.8% to $292.2 million at June 30, 2005
from June 30, 2004.  Deposits have grown $15.7 million or 5.5% over the
same period.

A quarterly dividend of $.24 per share was declared on July 15, 2005 to
shareholders of record July 25, 2005, payable July 28, 2005.

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,
2005, the Company had approximately $361 million in consolidated assets and
operated 12 banking offices, 30 ATM facilities in Vermont and loan
origination offices in St. Albans, Vermont and Littleton, New Hampshire.



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.