CREATE FUNCTION [dbo].[Custom_StringToTableWithID]
(
    @string VARCHAR(MAX),
    @delimiter CHAR(1)
)
--The return table has a column with auto-increment primary key and a column with text 
--The text column is the result of the split string from the input
RETURNS @output TABLE( ID int identity primary key, Data VARCHAR(MAX))

BEGIN

    DECLARE @start INT, @end INT
    SELECT @start = 1, @end = CHARINDEX(@delimiter, @string)

    WHILE @start < LEN(@string) + 1 BEGIN
        IF @end = 0 
            SET @end = LEN(@string) + 1

        INSERT INTO @output (data) 
        --Stripped off any new line character, carriage return character, leading and trailing spaces in the insert value
        --Each new line and carrage return characters is replaced by a blank space
        VALUES (LTRIM(RTRIM(REPLACE(REPLACE(SUBSTRING(@string, @start, @end - @start),CHAR(10), ' '), CHAR(13), ' '))))
        SET @start = @end + 1
        SET @end = CHARINDEX(@delimiter, @string, @start)
    END

    RETURN

END

DECLARE @title nvarchar(100)
SET @title = (SELECT Title FROM CUSTOM_test WHERE ID = 'Item1')
DECLARE @word nvarchar(20)
SET @word = (SELECT Data FROM Custom_StringToTableWithID(@title, ' ') WHERE ID = 1)

DECLARE @title nvarchar(100)
DECLARE @word nvarchar(20)
UPDATE CUSTOM_test
SET 
	@title = Title,
	@word = (SELECT Data FROM Custom_StringToTableWithID(@title, ' ') WHERE ID = 1)
WHERE ID = 'Item1'

SELECT
	f.*
FROM
	CUSTOM_Test a
	CROSS APPLY Custom_StringToTableWithID(a.title,' ') f