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In the video tutorial, Matthew explains how to create a release of liability form. To do this, he recommends visiting Legal Templates and selecting the business forms section. Using the search engine, type in "release of liability form waiver" and choose between general release or car accident waiver. Fill out the form with details such as the releaser's name and address, claims description, payment method and amount, date of agreement, and governing state. Consider adding a witness or notary if needed.