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Draw Collectible (Texture) To Screen

I have set up a collectible to disappear upon pressing E using a Trace. I would like to draw a picture to the screen that represents the collectible (Ex: Collectible is a piece of paper and after clicking E it will show a note on screen for the player to read, then both the picture and object will disappear). Do I have to draw the picture separately through a HUD Blueprint and then somehow reference it in the Collectible’s Blueprint or can I draw the texture within the Collectible’s Blueprint?

Many ways that you could do that.
If you need draw the texture from within the collectible’s blueprint then you could simply spawn a custom UMG widget that sets an image (and/or text) in its construction event.
Just make sure your widget has a texture variable with “Expose on Spawn” checked.