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In this video, Matthew explains how to create a medical power of attorney using legal templates available via a link in the description. He guides viewers to select the "Personal and Family Forms" option and find the medical power of attorney template. After selecting Texas as the state (with a note to choose according to your own state), he fills in the principal's information, emphasizing that viewers should use their own details. Matthew then provides an example agent's information and discusses the option to include an alternate agent. He highlights that after completing the necessary information, users can specify any limitations on the agent's powers.