Turning overlapping mesh invisible

I want to have a collision box, with a custom “mesh” to use as the collision.
I’d like so that any mesh (with a specified tag) to turn invisible when inside this collision. There may be a way to do this, (turn a bone or whole actor invisible when inside the collision) but i want to have only part or sometimes cut through the mesh at the exact point that the mesh overlaps the collision…
This is why i think that using decals may be a solution (turning any surface the decal touches, invisible)

If any of this is possible, let me know. I’d also like to have collision dynamically change as past of the mesh turns invisible or visible.