Basic melee implementation, help and artist :P

https://docs.unrealengine.com/latest/INT/Engine/Content/Types/SkeletalMeshes/Sockets/index.html

You will want to attach the sword using the socket bp nodes (See reference document above). Simply create a On Key Press event for the “E” key, do a raycast to see if you hit the object, and if true, bind the object to the socket.