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In the video tutorial, Matthew demonstrates how to create a release of liability form using legal templates. He suggests going to the business forms section and searching for "release of liability form waiver." Choose between a general release or a car accident activity waiver, opting for the general release. Fill in details such as name, address, claims description, payment method, amount, agreement date, governing state, and witness or notary. The process is straightforward and can be done easily by following his instructions.