So I did a little more testing and found out that the problem is somewhere else.
This current setup should work, regardless if it is 100% open to cheating.
Line trace hits->player interacts->adds item->tells server to destroy actor.
The target is coming from the hit result of the line trace: “Hit Actor”. When the client interacts the print string shows the correct name of the hit actor but it does not destroy it (also it gives the “Accessed none” error for the destroy actor node). When the server interacts the print string shows nothing, yet it destroys the correct actor.