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In the video tutorial, Matthew shows viewers how to create a release of liability form using Legal Templates. He guides viewers to the business forms section, suggests using the search engine for "release of liability form waiver," and advises choosing general release over car accident activity waiver. Viewers are instructed to fill in personal details, like name and address, choose payment method, and specify the claims to be released. The governing state is likely the same as the one currently residing in, with the option to include a witness or notary.