I think you’ll get best results by setting up physics-based grabbing and letting the physics engine handle collisions.
Here is an example physics-based spring arm component, which you can attach to the camera component in Character BP. Then you can virtually attach any physics object to it.
Custom scene component BP - the component provides attachment and detachment functions, it backups and modifies a few physics properties to feel better while carrying around (gravity, damping), and applies physics on tick to maintain object at a target distance.
Character setup - I added an overlapper capsule to detect grabbable objects in range, and a physics spring arm (the new component) with some sound defaut values :
Character BP - (overly) simplistic setup to grab object in range when pressing E :
