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In the video tutorial, Matthew demonstrates how to create a release of liability form. He directs viewers to a link for legal templates and advises them to select "business forms" to find various templates. Using the search function, he suggests searching for "release of liability form waiver" and choosing between a general release or a car accident activity waiver, ultimately opting for the general release. Matthew explains how to fill out the form, including entering the name and address of the releaser, describing the claims to be released, selecting payment options, and specifying the date of the agreement. He emphasizes ensuring the governing state matches the location, which for him is Texas, and mentions the need for a witness or notary.