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In the tutorial, Matthew explains how to create a release of liability form. He directs viewers to a link for legal templates, instructing them to select "business forms" and use the search function to find "release of liability form waiver." He suggests choosing either a general release or a car accident activity waiver, opting for the general release in this instance. He demonstrates filling out the document by entering a name (e.g., Matt), address, and city (Texas). Matthew outlines the need to specify claims being released, choose a form of payment (money), and document the amount. He mentions including the date of the agreement and the governing state, which he indicates will also be Texas, along with options for a witness or notary.